Wiley GAAP 2023 E-Book

Joanne M. Flood

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Regulatory Reporting
• Sprache: Englisch

Seitenzahl: 2978

Veröffentlichungsjahr: 2022

Beschreibung

The gold standard in US GAAP resources--fully revised to reflect the latest pronouncements US GAAP undergoes constant revision and review, requiring accountants and other financial practitioners to keep a close eye on updates and changes. Wiley GAAP 2023 offers the most comprehensive coverage of all Financial Accounting Standards Board (FASB) Topics--including all the latest updates. Every chapter offers a discussion of relevant perspectives and issues, GAAP sources, practice-oriented examples, and clear definitions of terms, concepts, and rules. Every FASB Topic is clearly explained in a reader-friendly way and includes dynamic graphics to help the reader understand and retain the nuanced subject matter. Extensively updated to reflect all current US GAAP changes, this invaluable practice resource: * Reviews all the latest changes to accounting principles * Offers expert guidance on complex issues raised by specific pronouncements * For ease of research, includes topic-specific chapters and comprehensive cross-references * Illustrates how each standard applies to common, real-world scenarios * Clarifies how to implement each standard with numerous practical examples The 2023 edition includes the latest revisions to standards on credit losses, leases, derivatives, and more, plus guidance on a new FASB Codification topic on government assistance. Non-compliance with GAAP is not an option for effective accounting and financial professionals. Wiley GAAP 2023 is your one-stop resource for staying current with constantly evolving guidelines and delivers the insight and guidance you need. BONUS: Online, downloadable Financial Statement Disclosure and Presentation Checklist, now including industry- specific disclosures!

Leseprobe

Table of Contents

COVER

TITLE PAGE

COPYRIGHT

PREFACE

ABOUT THE AUTHOR

CODIFICATION TAXONOMY

1 ASC 105 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

PERSPECTIVES AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

2 ASC 205 PRESENTATION OF FINANCIAL STATEMENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

3 ASC 210 BALANCE SHEET

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

4 ASC 215 STATEMENT OF SHAREHOLDER EQUITY

PERSPECTIVE AND ISSUES

5 ASC 220 INCOME STATEMENT—REPORTING COMPREHENSIVE INCOME

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

6 ASC 230 STATEMENT OF CASH FLOWS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

7 ASC 235 NOTES TO FINANCIAL STATEMENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

8 ASC 250 ACCOUNTING CHANGES AND ERROR CORRECTIONS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

9 ASC 255 CHANGING PRICES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

10 ASC 260 EARNINGS PER SHARE

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

Presentation on the Income Statement

COMPREHENSIVE EXAMPLE

NOTES

11 ASC 270 INTERIM REPORTING

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

REQUIREMENTS APPLICABLE TO ALL REPORTING ENTITIES

REQUIREMENTS APPLICABLE TO PUBLIC REPORTING ENTITIES

12 ASC 272 LIMITED LIABILITY ENTITIES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

13 ASC 274 PERSONAL FINANCIAL STATEMENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

14 ASC 275 RISKS AND UNCERTAINTIES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

15 ASC 280 SEGMENT REPORTING

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

16 ASC 310 RECEIVABLES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

17 ASC 320 INVESTMENTS—DEBT SECURITIES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

18 ASC 321 INVESTMENTS—EQUITY SECURITIES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

19 ASC 323 INVESTMENTS—EQUITY METHOD AND JOINT VENTURES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES—ASC 323-10,

OVERALL

: THE EQUITY METHOD OF ACCOUNTING FOR INVESTMENTS

CONCEPTS, RULES, AND EXAMPLES—ASC 323-30,

EQUITY INVESTMENTS IN CORPORATE JOINT VENTURES AND NONCORPORATE ENTITIES

CONCEPTS, RULES, AND EXAMPLES—ASC 323-740,

QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

20 ASC 325 INVESTMENTS—OTHER

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

21 ASC 326 FINANCIAL INSTRUMENTS—CREDIT LOSSES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES—ASC 326-10,

OVERALL

CONCEPTS, RULES, AND EXAMPLES—ASC 326-20,

MEASURED AT AMORTIZED COST

CONCEPTS, RULES, AND EXAMPLES—ASC 326-30,

AVAILABLE-FOR-SALE DEBT SECURITIES

NOTES

22 ASC 330 INVENTORY

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

23 ASC 340 OTHER ASSETS AND DEFERRED COSTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

24 ASC 350 INTANGIBLES—GOODWILL AND OTHER

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES—ASC 350-10,

OVERALL

CONCEPTS, RULES, AND EXAMPLES—ASC 350-20,

GOODWILL

CONCEPTS, RULES, AND EXAMPLES—ASC 350-30,

GENERAL INTANGIBLES OTHER THAN GOODWILL

CONCEPTS, RULES, AND EXAMPLES—ASC 350-40,

INTERNAL-USE SOFTWARE

CONCEPTS, RULES, AND EXAMPLES—ASC 350-50,

WEBSITE DEVELOPMENT COSTS

NOTES

25 ASC 360 PROPERTY, PLANT, AND EQUIPMENT

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

OVERALL—ASC 360-10,

PROPERTY, PLANT, AND EQUIPMENT

CONCEPTS, RULES, AND EXAMPLES—ASC 360-20,

REAL ESTATE SALES

—SALE LEASEBACK ACCOUNTING

26 ASC 405 LIABILITIES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

27 ASC 410 ASSET RETIREMENT AND ENVIRONMENTAL OBLIGATIONS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

ASC 410-20,

ASSET RETIREMENT OBLIGATIONS

ASC 410-30,

ENVIRONMENTAL OBLIGATIONS

28 ASC 420 EXIT OR DISPOSAL COST OBLIGATIONS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

29 ASC 430 DEFERRED REVENUE AND CONTRACT LIABILITIES

30 ASC 440 COMMITMENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

31 ASC 450 CONTINGENCIES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

32 ASC 460 GUARANTEES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

33 ASC 470 DEBT

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

34 ASC 480 DISTINGUISHING LIABILITIES FROM EQUITY

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

35 ASC 505 EQUITY

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

36 ASC 605 REVENUE RECOGNITION

CONCEPTS, RULES, AND EXAMPLES

DEFINITIONS OF TERMS

ASC 605-20,

REVENUE RECOGNITION—PROVISION FOR LOSSES ON SEPARATELY PRICED EXTENDED WARRANTY AND PRODUCT MAINTENANCE CONTRACTS

ASC 605-35,

CONSTRUCTION-TYPE AND PRODUCTION-TYPE CONTRACTS

37 ASC 606 REVENUE FROM CONTRACTS WITH CUSTOMERS

PERSPECTIVE AND ISSUES

STEP 1: IDENTIFY THE CONTRACT WITH THE CUSTOMER

STEP 2: IDENTIFYING THE PERFORMANCE OBLIGATIONS

STEP 3: DETERMINE THE TRANSACTION PRICE

STEP 4: ALLOCATE THE TRANSACTION PRICE

STEP 5: RECOGNIZE REVENUE WHEN (OR AS) THE ENTITY SATISFIES A PERFORMANCE OBLIGATION

OTHER ISSUES

NOTES

38 ASC 610 OTHER INCOME

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

39 ASC 705 COST OF SALES AND SERVICES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

40 ASC 710 COMPENSATION—GENERAL

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

41 ASC 712 COMPENSATION— NONRETIREMENT POST-EMPLOYMENT BENEFITS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

42 ASC 715 COMPENSATION—RETIREMENT BENEFITS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

ASC 715-20,

DEFINED BENEFITS PLANS—GENERAL

ASC 715-30,

DEFINED BENEFIT PLANS—PENSION

ASC 715-60,

DEFINED BENEFITS PLANS—OTHER POSTRETIREMENT

ASC 715-70,

DEFINED CONTRIBUTION PLANS

ASC 715-80,

MULTIEMPLOYER PENSION PLANS

43 ASC 718 COMPENSATION—STOCK COMPENSATION

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

44 ASC 720 OTHER EXPENSES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

45 ASC 730 RESEARCH AND DEVELOPMENT

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

46 ASC 740 INCOME TAXES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

47 ASC 805 BUSINESS COMBINATIONS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

48 ASC 808 COLLABORATIVE ARRANGEMENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

49 ASC 810 CONSOLIDATIONS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONSOLIDATION MODELS—INTRODUCTION AND BACKGROUND

THE VIE MODEL

VOTING INTEREST MODEL

NOTES

50 ASC 815 DERIVATIVES AND HEDGING

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

51 ASC 820 FAIR VALUE MEASUREMENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

52 ASC 825 FINANCIAL INSTRUMENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

ASC 825-20,

REGISTRATION PAYMENT ARRANGEMENTS

NOTES

53 ASC 830 FOREIGN CURRENCY MATTERS

ASC 830,

FOREIGN CURRENCY MATTERS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

54 ASC 832 GOVERNMENT ASSSISTANCE

TECHNICAL ALERT

PERSPECTIVE AND ISSUES

DEFINITION OF TERM

CONCEPTS, RULES, AND EXAMPLES

55 ASC 835 INTEREST

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

56 ASC 842 LEASES

PERSPECTIVE AND ISSUES

OVERVIEW

DEFINITIONS OF TERMS

ASC 842-10,

OVERALL,

CONCEPTS, RULES, AND EXAMPLES

ASC 842-20,

LESSEES,

CONCEPTS, RULES, AND EXAMPLES

ASC 842-30,

LESSOR

, CONCEPTS, RULES, AND EXAMPLES

ASC 842-40,

SALE AND LEASEBACK TRANSACTIONS

, CONCEPTS, RULES, AND EXAMPLES

ASC 842-50,

LEVERAGED LEASES

, CONCEPTS, RULES, AND EXAMPLES

PRESENTATION—USING THE DISPLAY APPROACH

IMPLEMENTATION CONSIDERATIONS

57 ASC 845 NONMONETARY TRANSACTIONS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

58 ASC 848 REFERENCE RATE REFORM

TECHNICAL ALERT

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

59 ASC 850 RELATED PARTY DISCLOSURES

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

60 ASC 852 REORGANIZATIONS

PERSPECTIVES AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

61 ASC 853 SERVICE CONCESSION ARRANGEMENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

62 ASC 855 SUBSEQUENT EVENTS

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

63 ASC 860 TRANSFERS AND SERVICING

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTE

64 ASC 900s SPECIALIZED INDUSTRY GAAP

CONTRACTORS—FEDERAL GOVERNMENT (ASC 912)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

ENTERTAINMENT—BROADCASTERS (ASC 920)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

ENTERTAINMENT—CABLE TELEVISION (ASC 922)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

ENTERTAINMENT—CASINOS (ASC 924)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

ENTERTAINMENT—FILM (ASC 926)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

ENTERTAINMENT—MUSIC (ASC 928)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

EXTRACTIVE ACTIVITIES—OIL AND GAS (ASC 932)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

FINANCIAL SERVICES—DEPOSITORY AND LENDING (ASC 942)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

FINANCIAL SERVICES—INSURANCE (ASC 944)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

FINANCIAL SERVICES—INVESTMENT COMPANIES (ASC 946)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

FINANCIAL SERVICES—MORTGAGE BANKING (ASC 948)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

FINANCIAL SERVICES—TITLE PLANT (ASC 950)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

FRANCHISORS (ASC 952)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS AND RULES

NOT-FOR-PROFIT ENTITIES (ASC 958)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

PLAN ACCOUNTING (ASC 960, ASC 962, ASC 965)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

HEALTH AND WELFARE BENEFIT PLANS (ASC 965)

REAL ESTATE—GENERAL (ASC 970)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

REAL ESTATE—COMMON INTEREST REALTY ASSOCIATIONS (ASC 972)

REAL ESTATE—RETAIL LAND (ASC 976)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

REAL ESTATE TIME-SHARING ACTIVITIES (ASC 978)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

REGULATED OPERATIONS (ASC 980)

PERSPECTIVE AND ISSUES

CONCEPTS, RULES, AND EXAMPLES

DEFINITIONS OF TERMS

SOFTWARE (ASC 985)

PERSPECTIVE AND ISSUES

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

NOTES

APPENDIX A: DEFINITIONS OF TERMS

NOTE

APPENDIX B: DISCLOSURE AND PRESENTATION CHECKLIST FOR COMMERCIAL BUSINESSES

INDEX

END USER LICENSE AGREEMENT

List of Tables

Chapter 10

Table 10.1

Table 10.2 Computations of Basic EPS and Diluted EPS

Table 10.3 Computations of Basic EPS and Diluted EPS

Guide

Cover

Title Page

Copyright

Preface

About the Author

Codification Taxonomy

Table of Contents

Begin Reading

Appendix A: Definitions of Terms

Appendix B: Disclosure and Presentation Checklist for Commercial Businesses

Index

End User License Agreement

Pages

ii

iii

iv

ix

x

xi

xiii

xiv

xv

xvi

xvii

xviii

xix

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

27

28

29

30

31

32

33

34

35

36

37

39

40

41

42

43

44

45

46

47

48

49

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

91

92

93

94

95

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

117

118

119

121

122

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

167

168

169

171

172

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

193

195

196

197

198

199

200

201

202

203

204

205

206

207

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

230

231

232

233

234

235

236

237

238

239

240

241

242

243

244

245

246

247

248

249

250

251

252

253

254

255

256

257

258

259

260

261

262

263

264

265

266

267

268

269

270

271

272

273

274

275

276

277

278

279

280

281

282

283

284

285

286

287

288

289

290

291

292

293

294

295

296

297

298

299

300

301

302

303

304

305

306

307

308

309

310

311

312

313

314

315

316

317

318

319

320

321

322

323

324

325

326

327

328

329

330

331

332

333

334

335

336

337

338

339

340

341

342

343

344

345

346

347

348

349

350

351

352

353

354

355

356

357

358

359

360

361

362

363

364

365

366

367

368

369

370

371

372

373

374

375

376

377

378

379

380

381

382

383

384

385

386

387

388

389

390

391

392

393

394

395

396

397

398

399

400

401

402

403

404

405

406

407

408

409

410

411

412

413

414

415

416

417

418

419

420

421

422

423

424

425

426

427

428

429

430

431

432

433

434

435

436

437

438

439

440

441

442

443

444

445

446

447

448

449

450

451

452

453

454

455

456

457

459

460

461

462

463

464

465

466

467

468

469

470

471

472

473

474

475

476

477

479

480

481

482

483

484

485

487

488

489

491

492

493

494

495

496

497

498

499

500

501

502

503

504

505

506

507

508

509

511

512

513

514

515

516

517

518

519

520

521

522

523

524

525

526

527

528

529

530

531

532

533

534

535

536

537

538

539

540

541

542

543

544

545

546

547

548

549

551

552

553

554

555

556

557

558

559

560

561

562

563

564

565

567

568

569

570

571

572

573

574

575

576

577

578

579

580

581

582

583

584

585

586

587

588

589

590

591

593

594

595

596

597

598

599

600

601

602

603

604

605

606

607

608

609

610

611

612

613

614

615

616

617

618

619

620

621

622

623

624

625

626

627

628

629

630

631

632

633

634

635

636

637

638

639

640

641

642

643

644

645

646

647

648

649

650

651

652

653

654

655

656

657

658

659

660

661

662

663

665

666

667

668

669

670

671

673

674

675

676

677

679

680

681

682

683

684

685

686

687

688

689

690

691

692

693

694

695

696

697

698

699

700

701

702

703

704

705

706

707

708

709

710

711

712

713

714

715

716

717

718

719

720

721

723

724

725

726

727

728

729

730

731

732

733

734

735

736

737

738

739

740

741

742

743

744

745

746

747

748

749

750

751

752

753

754

755

756

757

758

759

760

761

763

764

765

766

767

768

769

771

772

773

774

775

776

777

778

779

780

781

782

783

784

785

786

787

788

789

790

791

792

793

794

795

796

797

798

799

800

801

802

803

804

805

806

807

808

809

810

811

812

813

814

815

816

817

818

819

820

821

822

823

824

825

826

827

828

829

831

832

833

834

835

836

837

838

839

840

841

842

843

844

845

846

847

848

849

850

851

852

853

854

855

856

857

858

859

860

861

862

863

864

865

866

867

868

869

870

871

872

873

874

875

876

877

879

880

881

882

883

884

885

886

887

888

889

891

892

893

894

895

896

897

898

899

900

901

902

903

904

905

906

907

908

909

910

911

912

913

914

915

916

917

918

919

920

921

922

923

924

925

926

927

928

929

930

931

932

933

934

935

936

937

938

939

940

941

942

943

944

945

946

947

948

949

950

951

952

953

954

955

956

957

958

959

960

961

962

963

964

965

966

967

968

969

970

971

972

973

974

975

976

977

978

979

980

981

982

983

984

985

986

987

988

989

990

991

992

993

994

995

996

997

998

999

1000

1001

1002

1003

1004

1005

1006

1007

1008

1009

1010

1011

1012

1013

1014

1015

1016

1017

1018

1019

1020

1021

1022

1023

1024

1025

1026

1027

1028

1029

1030

1031

1032

1033

1034

1035

1036

1037

1038

1039

1040

1041

1042

1043

1044

1045

1046

1047

1049

1050

1051

1052

1053

1054

1055

1056

1057

1058

1059

1060

1061

1062

1063

1064

1065

1066

1067

1068

1069

1070

1071

1072

1073

1074

1075

1076

1077

1078

1079

1080

1081

1082

1083

1084

1085

1086

1087

1088

1089

1090

1091

1092

1093

1094

1095

1096

1097

1098

1099

1100

1101

1102

1103

1104

1105

1106

1107

1108

1109

1110

1111

1112

1113

1114

1115

1116

1117

1118

1119

1120

1121

1122

1123

1124

1125

1126

1127

1128

1129

1130

1131

1132

1133

1134

1135

1136

1137

1138

1139

1140

1141

1142

1143

1144

1145

1146

1147

1148

1149

1150

1151

1152

1153

1154

1155

1156

1157

1158

1159

1160

1161

1162

1163

1164

1165

1166

1167

1168

1169

1170

1171

1172

1173

1174

1175

1176

1177

1178

1179

1180

1181

1182

1183

1184

1185

1186

1187

1188

1189

1190

1191

1192

1193

1194

1195

1196

1197

1198

1199

1200

1201

1202

1203

1204

1205

1206

1207

1208

1209

1210

1211

1212

1213

1214

1215

1216

1217

1218

1219

1220

1221

1222

1223

1224

1225

1226

1227

1228

1229

1230

1231

1232

1233

1234

1235

1236

1237

1238

1239

1240

1241

1242

1243

1244

1245

1246

1247

1248

1249

1250

1251

1252

1253

1254

1255

1256

1257

1258

1259

1260

1261

1262

1263

1264

1265

1266

1267

1268

1269

1270

1271

1272

1273

1274

1275

1276

1277

1279

1280

1281

1282

1283

1284

1285

1286

1287

1288

1289

1290

1291

1292

1293

1294

1295

1296

1297

1298

1299

1300

1301

1302

1303

1304

1305

1306

1307

1308

1309

1310

1311

1312

1313

1314

1315

1316

1317

1318

1319

1320

1321

1323

1324

1325

1326

1327

1328

1329

1330

1331

1332

1333

1334

1335

1336

1337

1338

1339

1340

1341

1342

1343

1344

1345

1346

1347

1348

1349

1350

1351

1352

1353

1354

1355

1356

1357

1358

1359

1360

1361

1362

1363

1364

1365

1366

Practitioner’s Guide to GAAP 2023

Interpretation and Application of GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

Joanne M. Flood, MBA, CPA

Copyright © 2023 by John Wiley & Sons, Inc. All rights reserved All rights reserved.Copyright © by the American Institute of Certified Public Accountants, Inc. Several items were quotes or referred to with permission.

Portions of this book have their origin in copyrighted materials from the Financial Accounting Standards Board. These are noted by reference to the specific pronouncement except for the definitions introduced in bold type that appear in a separate section at the beginning of each chapter. Complete copies are available directly from the FASB. Copyright © by the Financial Accounting Standards Board, 401 Merritt 7, PO Box 5116, Norwalk, Connecticut 06856-5116, USA.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permission.

Trademarks: Wiley and the Wiley logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product or vendor mentioned in this book.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at [phone], outside the United States at [phone] or fax [phone].

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic formats. For more information about Wiley products, visit our web site at www.wiley.com.

Library of Congress Cataloging-in-Publication Data is Available:

ISBN 9781394152650 (Paperback)ISBN 9781394152674 (ePDF)ISBN 9781394152681 (ePub)

Cover Design and Image: Wiley

PREFACE

Wiley GAAP 2023: Interpretation and Application provides analytical explanations, copious illustrations, and nearly 300 examples of all current generally accepted accounting principles. The book integrates principles promulgated by the FASB in its Accounting Standards Codification.® Wiley GAAP is organized to align fully with the structure of the FASB Codification. Each chapter begins with a list of the subtopics included within the topic, scope, scope exceptions, technical alerts of any FASB Updates, and an overview of the topic. The remainder of each chapter contains a detailed discussion of the concepts and practical examples and illustrations. This organization facilitates the primary objective of the book—to assist financial statement preparers and practitioners in resolving the myriad practical problems faced in applying GAAP.

Hundreds of meaningful, realistic examples guide users in the application of GAAP to the complex fact situations that must be dealt with in the real world practice of accounting. In addition to this emphasis, a major strength of the book is that it explains the theory of GAAP in sufficient detail to serve as a valuable adjunct to accounting textbooks. Much more than merely a reiteration of currently promulgated GAAP, it provides the user with the underlying conceptual bases for the rules. It facilitates the process of reasoning by analogy that is so necessary in dealing with the complicated, fast-changing world of commercial arrangements and transaction structures. It is based on the author's belief that proper application of GAAP demands an understanding of the logical underpinnings of all its technical requirements.

As a bonus, a comprehensive presentation and disclosure checklist, available online to all Wiley GAAP purchasers, offers practical guidance on preparing financial statements for commercial and not-for-profit entities in accordance with GAAP. For easy reference and research, the checklist also follows the order of the Codification. Go to www.wiley.com\go\GAAP2023 (password: Flood2023).

The author's wish is that this book will serve preparers, practitioners, faculty, and students as a reliable reference tool to facilitate their understanding of, and ability to apply, the complexities of the authoritative literature.

ASUs Issued Since Previous Edition. The following FASB Accounting Standards Updates (ASUs) were issued since Wiley GAAP 2022 and through June 2022. Their requirements are incorporated into this edition of Wiley GAAP, as and where appropriate, and/or in the Technical Alert section at the beginning of the topic referenced in the ASU title.

ASU 2021-05,

Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments

ASU 2021-06,

Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786,

Amendments to Financial Disclosures about Acquired and Disposed Businesses,

and No. 33-10835,

Update of Statistical Disclosures for Bank and Savings and Loan Registrants

(SEC Update)

ASU 2021-07,

Compensation—Stock Compensation (Topic 718): Determining the Current Price of an Underlying Share for Equity-Classified Share-Based Awards (a consensus of the Private Company Council)

ASU 2021-08,

Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

ASU 2021-09,

Leases (Topic 842): Discount Rate for Lessees That Are Not Public Business Entities

ASU 2021-10,

Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance

ASU 2022-01,

Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method

ASU 2022-02,

Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures

ASU 2022-02,

Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method

On the Horizon. Significant accounting changes are on the horizon. In the next year, the FASB is expected to make strides on the following major projects and others:

Conceptual framework projects on elements, measurement, and presentation

Credit losses

Crypto assets

Environmental credit programs

Joint Venture Formations

Hedge accounting

Identifiable intangible assets

Insurance

Leases

Numerous narrow scope projects

Reference rate reform

Segment reporting

Readers are encouraged to check the FASB website for status updates to the above and other FASB projects.

Joanne M. Flood

September 2022

ABOUT THE AUTHOR

Joanne Flood, MBA, CPA, is an author and independent consultant on accounting and auditing technical topics and e-learning. She has experience as an auditor in both an international firm and a local firm and worked as a senior manager in the AICPA's Professional Development group. She received her MBA summa cum laude in accounting from Adelphi University and her bachelor's degree in English from Molloy University. Joanne received the New York State Society of Certified Public Accountants Award of Honor for outstanding scholastic achievement at Adelphi University. Joanne also has a certificate in Designing Interactive Multimedia Instruction from Teachers College, Columbia University.

While in public accounting, Joanne worked for a Big Four accounting firm, auditing major clients in retail, manufacturing, and finance and for a small firm auditing business clients in construction, manufacturing, and professional services. At the AICPA, she developed and wrote e-learning, text, and instructor-led training courses on U.S. and international standards. She also produced training materials in a wide variety of media, including print, video, and audio, and pioneered the AICPA's e-learning product line. Joanne resides on Long Island, New York, with her daughter, Elizabeth. Elizabeth is also Joanne's editorial assistant, providing valuable production and copyediting services. Joanne is the author of the following Wiley publications:

Financial Disclosure Checklist

Wiley GAAP 2023: Interpretation and Application of Generally Accepted Accounting Principles

Wiley Practitioner's Guide to GAAS 2022: Covering all SASs, SSAEs, SSARSs, and Interpretations

Wiley GAAP: Financial Statement Disclosures Manual

Wiley Revenue Recognition

CODIFICATION TAXONOMY

Topic # and title

Subtopic # and title

I. General Principles and Objectives

105

Generally Accepted Accounting

105-10

Overall Principles

II. Overall Financial Reporting, Presentation, and Display Matters

A. Overall Presentation of Financial Statements

205

Presentation of Financial Statements

205-10 205-20 205-30 205-40

Overall Discontinued Operations Liquidation Basis of Accounting Going Concern

210

Balance Sheet

210-10 210-20

Overall Offsetting

215

Statement of Shareholders' Equity

215-10

Overall

220

Income Statement-Reporting Comprehensive Income

220-10 220-20 220-30

Overall Unusual or Infrequently Occurring Items Business Interruption Insurance

230

Statement of Cash Flows

230-10

Overall

235

Notes to Financial Statements

235-10

Overall

B. Various Financial Reporting, Presentation, and Display Matters

250

Accounting Changes and Error Corrections

250-10

Overall

255

Changing Prices

255-10

Overall

260

Earnings Per Share

260-10

Overall

270

Interim Reporting

270-10

Overall

272

Limited Liability Entities

272-10

Overall

274

Personal Financial Statements

274-10

Overall

275

Risks and Uncertainties

275-10

Overall

280

Segment Reporting

280-10

Overall

III. Transaction-Related Topics

A. Financial Statement Accounts

310

Receivables

310-10 310-20 310-30 310-40

Overall Nonrefundable Fees and Other Costs Loans and Debt Securities Acquired with Deteriorated Credit Quality Troubled Debt Restructurings by Creditors

320

Investments—Debt Securities

320-10

Overall Securities

321

Investments—Equity Securities

321-10

Overall

323

Investments—Equity Method and Joint Ventures

323-10 323-30

Overall Joint Ventures Partnerships, Joint Ventures, and Limited Liability Entities

325

Investments—Other

325-10 325-20 325-30 325-40

Overall Cost Method Investments Investments in Insurance Contracts Beneficial Interests in Securitized Financial Assets

326

Financial Instruments—Credit Losses

326-10 326-20 326-30

Overall Measured at Amortized Cost Available-for-Sale Securities

330

Inventory

330-10

Overall

340

Other Assets and Deferred Costs

340-10 340-20 340-30 340-40

Overall Capitalized Advertising Costs Insurance Contracts That Do Not Transfer Insurance Risk Contracts with Customers

350

Intangibles—Goodwill and Other

350-10 350-20 350-30 350-40 350-50

Overall Goodwill General Intangibles Other Than Goodwill Internal-Use Software Website Development Costs

360

Property, Plant, and Equipment

360-10 360-20

Overall Real Estate Sales

405

Liabilities

405-10 405-20 405-30 405-40

Overall Extinguishment of Liabilities Insurance-Related Assessments Obligations Resulting from Joint and Several Liabilities

410

Asset Retirement and Environmental Obligations

410-10 410-20 410-30

Overall Asset Retirement Obligations Environmental Obligations

420

Exit or Disposal Cost Obligations

420-10

Overall

430

Deferred Revenue

430-10

Overall

440

Commitments

440-10

Overall

450

Contingencies

450-10 450-20

Overall Loss Contingencies

450-30

Gain Contingencies

460

Guarantees

460-10

Overall

470

Debt

470-10 470-20 470-30 470-40 470-50 470-60

Overview Debt with Conversion and Other Options Participating Mortgage Loans Product Financing Arrangements Modifications and Extinguishments Troubled Debt Restructurings by Debtors

480

Distinguishing Liabilities from Equity

480-10

Overall

505

Equity

505-10 505-20 505-30 505-50 505-60

Overall Stock Dividends and Stock Splits Treasury Stock Equity-Based Payments to Non-Empoyees Spin-offs and Reverse Spin-offs

605

Revenue Recognition

605-20 605-35

Revenue Recognition—Provisions for Losses on Separately Priced Extended Warranty and Product Maintenance Contracts Revenue Recognition—Provision for Losses on Construction-Type and Production-Type Contracts

606

Revenue from Contracts with Customers

606-10

Overall

610

Other Income

610-10 610-20 610-30

Overall Gains and Losses from the Derecognition of Nonfinancial Assets Gains and Losses on Involuntary Conversions

705

Cost of Sales and Services

705-10 705-20

Overall Accounting for Consideration Received from a Vendor

710

Compensation—General

710-10

Overall

712

Compensation—Nonretirement Postemployment Benefits

712-10

Overall

715

Compensation—Retirement Benefits

715-10 715-20 715-30 715-60 715-70 715-80

Overall Defined Benefit Plans—General Defined Benefit Plans—Pensions Defined Benefit Plans—Other Postretirement Defined Contribution Plans Multiemployer Plans

718

Compensation—Stock Compensation

718-10 718-20 718-30 718-40 718-50

Overall Awards Classified as Equity Awards Classified as Liabilities Employee Stock Ownership Plans Employee Share Purchase Plans

720

Other Expenses

720-10 720-15 720-20 720-25 720-30 720-35 720-40 720-45 720-50

Overall Start-Up Costs Insurance Costs Contributions Made Real and Personal Property Taxes Advertising Costs Electronic Equipment Waste Obligations Business and Technology Reengineering Fees Paid to the Federal Government by Pharmaceutical Manufacturers and Health Insurer

730

Research and Development

730-10 730-20

Overall Research and Development Arrangements

740

Income Taxes

740-10 740-20 740-30

Overall Intraperiod Tax Allocation Other Considerations or Special Areas

B. Broad Transactional Categories

805

Business Combinations

805-10 805-20 805-30 805-40 805-50

Overall Identifiable Assets and Liabilities, and Any Noncontrolling Interest Goodwill or Gain from Bargain Purchase, Including Consideration Transferred Reverse Acquisitions Related Issues

808

Collaborative Arrangements

808-10

Overall

810

Consolidation

810-10 810-20 810-30

Overall Control of Partnerships and Similar Entities Research and Development Arrangements

815

Derivatives and Hedging

815-10 815-15 815-20 815-25 815-30 815-35 815-40 815-45

Overall Embedded Derivatives Hedging—General Fair Value Hedges Cash Flow Hedges Net Investment Hedges Contracts in Entity's Own Equity Weather Derivatives

820

Fair Value Measurements

820-10

Overall

825

Financial Instruments

825-10 825-20

Overall Registration Payment Arrangements

830

Foreign Currency Matters

830-10 830-20 830-30

Overall Foreign Currency Transactions Translation of Financial Statements

832

Government Assistance

832-10

Overall

835

Interest

835-10 835-20 835-30

Overall Capitalization of Interest Imputation of Interest

842

Leases

842-10 842-20 842-30 842-40 842-50

Overall Lessee Lessor Sale and Leaseback Transactions Leveraged Lease Arrangements

845

Nonmonetary Transactions

845-10

Overall

848

Reference Rate Reform

848-10 848-20 848-30 848-40 848-50

Overall Contract Modifications Hedging-General Fair Value Hedges Cash Flow Hedges

850

Related-Party Disclosures

850-10

Overall

852

Reorganization

852-20

Quasi-Reorganization

853

Service Concession Arrangements

853-10

Overall

855

Subsequent Events

855-10

Overall

860

Transfers and Servicing

860-10 860-20 860-30 860-40 860-50

Overall Sales of Financial Assets Secured Borrowings and Collateral Transfers to Qualifying Special-Purpose Entities Servicing Assets and Liabilities

IV. Industry/Unique Topics

905

Agriculture

905-10

Overall

908

Airlines

908-10

Overall

910

Contractors—Construction

910-10 910-20

Overall Contract Costs

912

Contractors—Federal Government

912-10 912-20

Overall Contract Costs

915

Development Stage Entities

915-10

Overall

920

Entertainment—Broadcasters

920-10

Overall

922

Entertainment—Cable Television

922-10

Overall

924

Entertainment—Casinos

924-10

Overall

926

Entertainment—Films

926-10 926-20

Overall Other Assets—Film Costs

928

Entertainment—Music

928-10

Overall

930

Extractive Activities—Mining

930-10

Overall

932

Extractive Activities—Oil and Gas

932-10

Overall

940

Financial Services—Brokers

940-10 940-20

Overall and Dealers Broker-Dealer Activities

942

Financial Services—Depository and Lending

942-10

Overall and Lending

944

Financial Services—Insurance

944-10 944-20 944-30 944-40 944-50 944-60 944-80

Overall Insurance Activities Acquisition Costs Claim Costs and Liabilities for Future Policy Benefits Policyholder Dividends Premium Deficiency and Loss Recognition Separate Accounts

946

Financial Services—Investment

946-10 946-20

Overall Companies Investment Company Activities

948

Financial Services—Mortgage

948-10

Overall Banking

950

Financial Services—Title Plant

952

Franchisors

952-10

Overall

954

Health Care Entities

954-10

Overall

958

Not-for-Profit Entities

958-10 958-20 958-30

Overall Financially Interrelated Entities Split-Interest Agreements

960

Plan Accounting—Defined Benefit

960-10 960-20 960-30 960-40

Overall Accumulated Plan Benefits Net Assets Available for Plan Benefits Terminating Plans

962

Plan Accounting—Defined

962-10 962-40

Overall Contribution Pension Plans Terminating Plans

965

Plan Accounting—Health and Welfare

965-10 965-20 965-30 965-40

Overall Net Assets Available for Plan Benefits Plan Benefits Obligations Terminating Plans

970

Real Estate—General

970-10

Overall

972

Real Estate—Common Interest

972-10

Overall Realty Associations

974

Real Estate—Real Estate

974-10

Overall

976

Real Estate—Retail Land

976-10

Overall

978

Real Estate—Time-Sharing Activities

978-10

Overall

980

Regulated Operations

980-10 980-20

Overall Discontinuation of Rate-Regulated Accounting

985

Software

985-10 985-20

Overall Costs of Software to Be Sold, Leased, or Marketed

V. Glossary