Wiley GAAP 2013: Interpretation and Application of Generally Accepted Accounting Principles

CHAPTER 2

STATEMENT OF FINANCIAL POSITION

Perspective and Issues

Definitions of Terms

Concepts, Rules, and Examples

Limitations of a Statement of Financial Position

Form of the Statement of Financial Position

Assets

Current assets

Noncurrent assets

Liabilities

Current liabilities

Noncurrent liabilities

Offsetting Assets and Liabilities

Stockholders’ Equity

Contributed capital

Capital stock

Additional paid-in capital

Retained earnings

Accumulated other comprehensive income

Treasury stock

Partners’ Capital

Members’ equity

Alternative Statement of Financial Position Segmentation

Definitions

Disclosures

Parenthetical explanations

Notes to financial statements

Cross-references

Valuation allowances

Accounting policies

Related parties

Comparative statements

Subsequent events

Rights of setoff

Contingencies

Commitments

Risks and Uncertainties

Nature of operations

Use of estimates in the preparation of financial statements

Certain significant estimates

Current vulnerability due to concentrations

PERSPECTIVE AND ISSUES

Statements of financial positions (formerly most commonly known as balance sheets, and also referred to as statements of financial condition) present information about assets, liabilities, and owners’ equity and their relationships to each other. They reflect an enterprise’s resources (assets) and its financing structure (liabilities and equity) in conformity with generally accepted accounting principles. The statement of financial position reports the aggregate effect of transactions ...