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Wiley GAAP: Financial Statement Disclosure Manual
Joanne M. Flood
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Wiley GAAP: Financial Statement Disclosure Manual
Joanne M. Flood
About This Book
Streamline financial statement preparation with this cross-referenced guide
Financial Statement Disclosures Manual is a natural complement to Wiley GAAP, providing a complete set of tools for statement preparation. This useful reference is formatted in accordance with FASB Accounting Standards CodificationÂŽ (ASC) schema, with information delineated as Presentation, Assets, Liabilities, Equity, Revenue, Expenses, and Broad Transactions. When used with other Wiley GAAP resources, this arrangement helps users perform additional research and easily find more detailed information on requirements, with disclosures referenced to FASB's ASC. Explicit examples enable easy customization, streamlining the statement preparation process and potentially improving the effectiveness of disclosures with clear presentation of information that is most important to users.
Determining the correct wording and presentation formats for disclosures is a time consuming effort. Standards are continually updated, and the latest changes to revenue recognition impact virtually all financial statements. This book is a guide to enhanced disclosure as standardized by FASB, and works in conjunction with other Wiley GAAP products to provide a complete professional reference.
- Find specific GAAP codification and explanations quickly and easily
- Get up to speed on the latest developments and updates
- Follow references to relevant content in Wiley GAAP and the Disclosure Checklist
- Study expertly-prepared examples to understand GAAP applications
Enhanced disclosure requirements have come about in response to accounting scandals, the proliferation of complicated instruments, and the pressure toward transparency. Keeping abreast of the latest developments â and their applications and requirements â is an essential but time-consuming part of the accountant's role. Financial Statement Disclosures Manual simplifies statement preparation by providing complete disclosures information, cross-referenced to relevant GAAP information and tools.
Frequently asked questions
Information
1
ASC 105 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
- Authoritative Literature
- What Is GAAP?
- Accounting Principles and Concepts
- Recognition Principles
- Disclosure Principles
- The Concept of Materiality
- Descriptions of Materiality
- Quantitative Factors
- Qualitative Factors
- Degree of Precision
- Disclosure and Presentation Requirements
AUTHORITATIVE LITERATURE
What Is GAAP?
⌠source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. In addition to the SEC's rules and interpretive releases, the SEC staff issues Staff Accounting Bulletins that represent practices followed by the staff in administering SEC disclosure requirements, and it utilizes SEC Staff Announcements and Observer comments made at Emerging Issues Task Force meetings to publicly announce its views on certain accounting issues for SEC registrants. ASC 105â10â05â1
If the guidance for a transaction or event is not specified within a source of authoritative GAAP for that entity, an entity shall first consider accounting principles for similar transactions or events within a source of authoritative GAAP for that entity and then consider nonauthoritative guidance from other sources. An entity shall not follow the accounting treatment specified in accounting guidance for similar transactions or events in cases in which those accounting principles either prohibit the application of the accounting treatment to the particular transaction or event or indicate that the accounting treatment should not be applied by analogy. ASC 105â10â05â2
- Practices that are widely recognized and prevalent either generally or in the industry
- FASB Concepts Statements
- American Institute of Certified Public Accountants (AICPA) Issues Papers
- International Financial Reporting Standards of the International Accounting Standards Board
- Pronouncements of professional associations or regulatory agencies
- Technical Information Service Inquiries and Replies included in AICPA Technical Practice Aids
- Accounting textbooks, handbooks, and articles (ASC 105â10â05â3)
- The measurement of economic activity,
- The time when such measurements are to be made and recorded,
- The disclosures surrounding this activity, and
- The preparation and presentation of summarized economic information in the form of financial statements.
Accounting Principles and Concepts
- Expand on some quantitative data,
- Explain assumptions underlying the numerical information, and
- Provide additional information on accounting policies, contingencies, uncertainties, etc.
The Concept of Materiality
QC11. Relevance and materiality are defined by what influences or makes a difference to an investor or other decision maker; however, these two concepts can be distinguished from each other. Relevance is a general notion about what type of information is useful to investors. Materiality is entity specific. The omission or misstatement of an item in a financial report is material if, in light of surrounding circumstances, the magnitude of the item is such that it is probable that the judgment of a reasonable person relying upon the report would have been changed or influenced by the inclusion or correction of the item.QC11A. A decision not to disclose certain information or recognize an economic phenomenon may be made, for example, because the amounts involved are too small to make a difference to an investor or other decision maker (they are immaterial). However, magnitude by itself, without regard to the nature of the item and the circumstances in which the judgment has to be made, generally is not a sufficient basis for a materiality judgment.QC11B. No general standards of materiality could be formulated to take into account all the considerations that enter into judgments made by an experienced reasonable provider of financial information. This is because materiality judgments can properly be made only by those that understand the reporting entity's pertinent facts and circumstances. Whenever an authoritative body imposes materiality rules or standards, it is substituting generalized collective judgments for specific individual judgments, and there is no reason to suppose that the collective judgments always are superior.
Descriptions of Materiality
Information is material if omitting it or misstating it could influence decisions that users make on the basis of the financial information of a specific reporting entity. In other words, materiality is an entityâspecific aspect of relevance based on the nature or magnitude or both of the items to which the information relates i...
Table of contents
- COVER
- TABLE OF CONTENTS
- TITLE PAGE
- COPYRIGHT
- PREFACE
- ABOUT THE AUTHOR
- 1 ASC 105 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
- 2 ASC 205 PRESENTATION OF FINANCIAL STATEMENTS
- 3 ASC 210 BALANCE SHEET
- 4 ASC 215 STATEMENT OF SHAREHOLDER EQUITY
- 5 ASC 220 INCOME STATEMENTâREPORTING COMPREHENSIVE INCOME
- 6 ASC 230, STATEMENT OF CASH FLOWS
- 7 ASC 235 NOTES TO FINANCIAL STATEMENTS
- 8 ASC 250 ACCOUNTING CHANGES AND ERROR CORRECTIONS
- 9 ASC 255 CHANGING PRICES
- 10 ASC 260 EARNINGS PER SHARE
- 11 ASC 270 INTERIM REPORTING
- 12 ASC 272 LIMITED LIABILITY ENTITIES
- 13 ASC 274 PERSONAL FINANCIAL STATEMENTS
- 14 ASC 275 RISKS AND UNCERTAINTIES
- 15 ASC 280 SEGMENT REPORTING
- 16 ASC 310 RECEIVABLES
- 17 ASC 320 INVESTMENTSâDEBT SECURITIES
- 18 ASC 321 INVESTMENTSâEQUITY SECURITIES
- 19 ASC 323 INVESTMENTSâEQUITY METHOD AND JOINT VENTURES
- 20 ASC 325 INVESTMENTSâOTHER
- 21 ASC 326 FINANCIAL INSTRUMENTSâCREDIT LOSSES
- 22 ASC 330 INVENTORY
- 23 ASC 340 OTHER ASSETS AND DEFERRED COSTS
- 24 ASC 350 INTANGIBLESâGOODWILL AND OTHER
- 25 ASC 360 PROPERTY, PLANT, AND EQUIPMENT
- 26 ASC 405 LIABILITIES
- 27 ASC 410 ASSET RETIREMENT AND ENVIRONMENTAL OBLIGATIONS
- 28 ASC 420 EXIT OR DISPOSAL COST OBLIGATIONS
- 29 ASC 430 DEFERRED REVENUE AND CONTRACT LIABILITIES
- 30 ASC 440 COMMITMENTS
- 31 ASC 450 CONTINGENCIES
- 32 ASC 460 GUARANTEES
- 33 ASC 470 DEBT
- 34 ASC 480 DISTINGUISHING LIABILITIES FROM EQUITY
- 35 ASC 505 EQUITY
- 36 ASC 605 REVENUE RECOGNITION
- 37 ASC 606 REVENUE FROM CONTRACTS WITH CUSTOMERS
- 38 ASC 610 OTHER INCOME
- 39 ASC 705 COST OF SALES AND SERVICES
- 40 ASC 710 COMPENSATIONâ GENERAL
- 41 ASC 712 COMPENSATIONâNONRETIREMENT POSTEMPLOYMENT BENEFITS
- 42 ASC 715 COMPENSATIONâRETIREMENT BENEFITS
- 43 ASC 718 COMPENSATIONâSTOCK COMPENSATION
- 44 ASC 720 OTHER EXPENSES
- 45 ASC 730 RESEARCH AND DEVELOPMENT
- 46 ASC 740 INCOME TAXES
- 47 ASC 805 BUSINESS COMBINATIONS
- 48 ASC 808 COLLABORATIVE ARRANGEMENTS
- 49 ASC 810 CONSOLIDATIONS
- 50 ASC 815 DERIVATIVES AND HEDGING
- 51 ASC 820 FAIR VALUE MEASUREMENT
- 52 ASC 825 FINANCIAL INSTRUMENTS
- 53 ASC 830 FOREIGN CURRENCY MATTERS
- 51 ASC 835 INTEREST
- 55 ASC 840 LEASES
- 56 ASC 842 LEASES
- 57 ASC 845 NONMONETARY TRANSACTIONS
- 58 ASC 848 REFERENCE RATE REFORM
- 59 ASC 850 RELATED-PARTY DISCLOSURES
- 60 ASC 852 REORGANIZATIONS
- 61 ASC 853 SERVICE CONCESSION ARRANGEMENTS
- 62 ASC 855 SUBSEQUENT EVENTS
- 63 ASC 860 TRANSFERS AND SERVICING
- INDEX
- End User License Agreement