GAAP Policies and Procedures, Second Edition

GAAP Policies and Procedures, Second Edition

by Colorado Steven M. Bragg Englewood
Released April 2007
Publisher(s): Wiley
ISBN: 9780470081839

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Book description

Now fully updated and at your fingertips the most practical, authoritative guide to implementing GAAP Get the answers you need to prepare financial statements and keep up to date on the latest FASB requirements. Now fully revised and updated, Wiley GAAP Policies and Procedures, Second Edition is an ideal companion to the Wiley GAAP guide and provides the practical application information essential to ensuring that a company's accounting systems are fully capable of incorporating the most recent GAAP. A concise version of the more detailed GAAP found in the Wiley GAAP guides, Wiley GAAP Policies and Procedures, Second Edition features handy, illustrative decision trees showing how to determine which GAAP ruling to use in a variety of situations, eliminating hours of time wading through detailed GAAP rulings and presents:
* New chapters on interim reporting, segment reporting, and accounting changes and correction of errors
* Updated content on FAS No. 151, Inventory Costs, FAS No. 153, Exchanges of Non-monetary Assets, FAS No. 154, Accounting Changes and Error Correction, FAS No. 156, Servicing of Financial Assets
* Implementation on nineteen newly issued EITFs
* Specific accounting policies that comply with GAAP, especially in terms of creating controls that mesh with GAAP
* The most common accounting transactions modified to work within GAAP restrictions
* Specific controls that allow the maximum level of control over accounting systems while remaining in compliance with GAAP
* Templates for forms and reports that can be used in a GAAP-compliant accounting system
* Numerous examples of footnotes that can be used to describe GAAP-mandated financial disclosures
* Hundreds of GAAP-compliant journal entries for most accounting transactions
Wiley GAAP Policies and Procedures, Second Edition is a valuable tool for CFOs, controllers, accounting managers, and general ledger accountants who need to ensure that their company properly treats all types of accounting transactions in accordance with GAAP.

Table of contents

  1. Copyright
    1. Dedication
  2. Become a Subscriber!
  3. Preface
  4. About the Author
  5. Acknowledgments
  6. Free Online Resources by Steve Bragg
  7. 1. Researching GAAP Implementation Problems
    1. Overview
      1. The GAAP Hierarchy
      2. Researching GAAP
      3. Researching Accounting Terminology
      4. Researching Accounting Policies and Procedures
      5. Researching Accounting Controls
      6. Researching Accounting Forms and Reports
      7. Researching Accounting Footnotes
      8. Researching Accounting Journal Entries
      9. Researching Accounting Recordkeeping
  8. 2. Cash, Receivables, and Prepaid Expenses
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Cash
      2. Prepaid Expenses
      3. Receivables—Presentation
      4. Receivables—Collateral, Assignments, and Factoring
      5. Receivables—Sales Returns
      6. Receivables—Early Payment Discounts
      7. Receivables—Long-Term
      8. Receivables—Bad Debts
    3. Decision Trees
      1. Receivables—Ownership Decision
    4. Policies
      1. Cash
      2. Prepaid Expenses
      3. Receivables
    5. Procedures
      1. Cash—Apply Cash to Accounts Receivable
      2. Cash—Receive and Deposit Cash
      3. Cash—Process Credit Card Payments
      4. Cash—Reconcile Petty Cash
      5. Cash—Reconcile Bank Account
      6. Receivables—Print and Issue Invoices
      7. Receivables—Calculate the Bad Debt Reserve
      8. Receivables—Authorize Bad Debt Write-Offs
    6. Controls
      1. Cash
      2. Prepaid Expenses
      3. Receivables
    7. Forms and Reports
      1. Cash—Mailroom Remittance Receipt
      2. Cash—Bank Reconciliation
      3. Cash—Cash Forecasting Model
      4. Receivables—Bad Debt Authorization Form
      5. Receivables—Collection Actions Taken
      6. Receivables—Aging Report
      7. Receivables—Loan Collateralization Report
    8. Footnotes
      1. Cash—Restrictions on Use
      2. Cash—Restrictions Caused by Compensating Balance Agreements
      3. Cash—Excessive Concentration in Uninsured Accounts
      4. Receivables—Bad Debt Recognition
      5. Receivables—Separation of Types
      6. Receivables—Used as Collateral
    9. Journal Entries
      1. Cash
        1. Bank reconciliation
      2. Receivables
        1. Accounts receivable, initial entry
        2. Accounts receivable, recording of long-term payment terms
        3. Accounts receivable, sale of
        4. Accounts receivable, payment due from factor
        5. Accounts receivable, establishment of recourse obligation
        6. Accounts receivable, write off
        7. Accrue bad debt expense
        8. Account for receipt of written-off receivable
        9. Accrue for sales returns
        10. Early payment discounts, record receipt of
    10. Recordkeeping
  9. 3. Short-Term Investments and Financial Instruments
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Fair Value Hedges
      2. Cash Flow Hedges
      3. Foreign Currency Hedges
    3. Policies
      1. Hedges—General
    4. Controls
      1. Hedges—General
      2. Fair Value Hedges
      3. Cash Flow Hedges
    5. Footnotes
      1. Short-Term Investments
      2. Restricted Short-Term Investments
      3. Disclosure of Objectives for Derivative Use
      4. Valuation of Financial Instruments
      5. Hedging of Foreign Operation Investment
    6. Recordkeeping
  10. 4. Inventory
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Goods in Transit
      2. Accounting for Inventories
      3. Valuation of Inventories
        1. Overhead costs allocable to inventory
        2. Lower of cost or market rule
        3. Specific identification inventory valuation method
        4. First-in, first-out (FIFO) inventory valuation method
        5. Last-in, first-out (LIFO) inventory valuation method
        6. Dollar-value LIFO inventory valuation method
        7. Weighted-average inventory valuation method
    3. Decision Trees
    4. Policies
      1. Goods in Transit
      2. Accounting for Inventories
      3. Valuation of Inventories
    5. Procedures
      1. Goods in Transit—Receiving Procedure
      2. Accounting for Inventories—Physical Count Procedure for Periodic Inventory
      3. Accounting for Inventories—Cycle Counting Procedure for Perpetual Inventory
      4. Accounting for Inventories—Part Logging Procedure for Perpetual Inventory
      5. Accounting for Inventories—Inbound Consignment Inventory
      6. Accounting for Inventories—Obsolete Inventory Review
      7. Valuation of Inventories—Period-End Inventory Valuation
      8. Valuation of Inventories—Lower of Cost or Market Calculation
    6. Controls
      1. Goods in Transit
      2. Accounting for Inventories
      3. Valuation of Inventories
    7. Forms and Reports
      1. Goods in Transit
      2. Accounting for Inventories
      3. Valuation of Inventories
    8. Footnotes
      1. Disclosure of Inventory
    9. Journal Entries
      1. Goods in Transit
        1. Record received goods
        2. Move inventory to work-in-process
        3. Move inventory to finished goods
        4. Sell inventory
      2. Accounting for Inventories
        1. Adjust inventory for obsolete items
        2. Adjust inventory to lower of cost or market
        3. Adjust inventory to physical count
        4. Write off abnormal scrap/spoilage
      3. Valuation of Inventories
        1. Record indirect expenses incurred
        2. Record indirect wages incurred
        3. Record receipt of supplies
        4. Record normal scrap/spoilage
        5. Allocate overhead costs to inventory
    10. Recordkeeping
      1. Goods in Transit
      2. Accounting for Inventories
      3. Valuation of Inventories
  11. 5. Revenue Recognition
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Revenue Recognition Scenarios
      2. Bill and Hold Revenue Transactions
      3. Recording Revenues at Gross or Net
      4. Reducing Revenue by Cash Paid to Customers
      5. Long-Term Construction Contracts
      6. Service Revenues
      7. Recognition of Losses on Service Contracts
      8. Recording Initiation Fees as Service Revenue
      9. Recording Out-of-Pocket Expense Reimbursements
      10. Sales When Collection Is Uncertain
      11. Repossession of Goods under Installment Sales
      12. Revenue Recognition When Right of Return Exists
      13. Revenue Recognition for Multiple Deliverables
      14. Franchise Sales
      15. Motion Picture Revenues
    3. Decision Trees
      1. Recording Revenues at Gross or Net
      2. Recording Service Revenues
    4. Policies
      1. Revenue—General
      2. Barter Revenues
      3. Long-Term Construction Contracts
      4. Sales When Collection Is Uncertain
      5. Revenue Recognition When Right of Return Exists
      6. Franchising Revenues
    5. Procedures
      1. Issue a Customer Credit Rating
      2. Process a Shipment
      3. Create an Invoice
      4. Compare Billings to the Shipping Log
      5. Review Pricing Errors
      6. Process Bill and Hold Transactions
      7. Process Sales Returns
      8. Collect Overdue Accounts
      9. Long-Term Construction Contracts—Percentage-of-Completion Calculation
      10. Service Revenues—Advance Recognition of Losses
      11. Sales When Collection Is Uncertain—Goods Repossession
      12. Revenue Recognition When Right of Return Exists
    6. Controls
      1. General
      2. Barter Revenues
      3. Cash Payments to Customers
      4. Recording Revenues at Gross or Net
      5. Long-Term Construction Contracts
      6. Service Revenues
      7. Sales When Collection Is Uncertain
      8. Revenue Recognition When Right of Return Exists
      9. Multiple Deliverable Arrangements (MDAs)
      10. Franchise Revenues
    7. Forms and Reports
      1. Customer Credit Application
      2. Acknowledgment of Bill and Hold Transaction
      3. Sales Return Authorization Form
      4. Sales Return Credit Calculation Form
    8. Footnotes
      1. Disclosure of Revenue Recognition Policy
      2. Disclosure of Bill and Hold Transactions
      3. Disclosure of Contract Revenue Recognition
      4. Disclosure of Barter Revenue
      5. Disclosure of Consignment Revenue
      6. Disclosure of Gain or Loss on Asset Sale
      7. Disclosure of Life Insurance Proceeds
      8. Disclosure of Research and Development Revenue
      9. Disclosure of Warranty Revenue Recognition
      10. Disclosure of Membership Fee Recognition
      11. Disclosure of Sales Return Allowance
      12. Disclosure of Warranty Expense Allowance
      13. Disclosure of Computer Software Sales
      14. Disclosure of Customers
      15. Disclosure of Foreign Customers
      16. Disclosure of Installment Sales
      17. Disclosure of Sales with Significant Rights of Return
      18. Disclosure of Multiple Deliverables
      19. Disclosure of Franchise Revenues
      20. Disclosure of Motion Picture Revenues
    9. Journal Entries
      1. Revenue—General
        1. Record sales return allowance
      2. Bill and Hold Transactions
      3. Cash Payments to Customers
      4. Long-Term Construction Contracts
        1. Record additional revenues under percentage-of-completion method
        2. Record excessive billings under percentage-of-completion method in a liability account
        3. Record amount of costs exceeding the total project billing
      5. Service Revenues
        1. Record unearned service revenue
        2. Record earned revenue under the proportional performance method
        3. Recognize a loss on a service contract
      6. Installment Revenues
        1. Revenue (installment basis)
        2. Repossession of goods sold under installment plans
      7. Revenue Recognition When Right of Return Exists
        1. To record predictable amounts of sales returns
    10. Recordkeeping
  12. 6. Long-Lived Assets
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Fixed Assets—Purchases
      2. Fixed Assets—Improvements
      3. Fixed Assets—Capitalization of Interest
      4. Fixed Assets—Dispositions
      5. Fixed Assets—Inbound Donations
      6. Fixed Assets—Outbound Donations
      7. Fixed Assets—Construction in Progress
      8. Fixed Assets—Land
      9. Fixed Assets—Leasehold Improvements
      10. Fixed Assets—Depreciation Base
      11. Fixed Assets—Depreciation
      12. Fixed Assets—Straight-Line Depreciation
      13. Fixed Assets—Double-Declining Balance Depreciation
      14. Fixed Assets—Sum-of-the-Years’ Digits Depreciation
      15. Fixed Assets—Units of Production Depreciation Method
      16. Fixed Assets—Asset Impairment
      17. Intangible Assets
      18. Research and Development (R&D) Costs
    3. Decision Trees
    4. Policies
      1. Fixed Assets
      2. Intangible Assets
      3. Research and Development Costs
    5. Procedures
      1. Fixed Assets—Calculate Depreciation
      2. Fixed Assets—Conduct Inventory of Fixed Assets
      3. Fixed Assets—Enter Fixed Asset Payments
      4. Fixed Assets—Evaluate Capital Purchase Proposals
      5. Fixed Assets—Record Gain/Loss on Sale of an Asset
      6. Fixed Assets—Test Assets for Impairment
      7. Intangible Assets—Test Assets for Impairment
    6. Controls
      1. Fixed Assets
      2. Intangible Assets
      3. Research and Development Costs
    7. Forms and Reports
      1. Fixed Assets
    8. Footnotes
      1. Disclosure of Asset Impairments
      2. Disclosure of Goodwill
      3. Disclosure of Intangibles
    9. Journal Entries
      1. Fixed Assets
        1. Depreciation
        2. Fixed asset (capitalization of interest)
        3. Fixed asset (impairment of)
        4. Fixed asset (retirement obligation)
        5. Fixed asset (sale of)
        6. Fixed asset (outbound donation)
        7. Fixed asset (purchase with stock)
        8. Fixed asset (exchange for a dissimilar asset)
        9. Fixed asset (write-off)
      2. Intangible Assets
        1. Goodwill, write-down
    10. Recordkeeping
  13. 7. Investments
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Accounting for Marketable Equity Securities
      2. Transfers between Available-for-Sale and Trading Investments
      3. Accounting for Investments in Debt Securities
      4. Transfers of Debt Securities among Portfolios
      5. Recognition of Deferred Tax Effects on Changes in Investment Valuations
      6. The Equity Method of Investment Accounting
    3. Decision Trees
      1. Accounting for Gains or Losses on Securities
    4. Policies
      1. Funds Investment Policies
      2. Accounting for Marketable Equity Securities
      3. Transfers between Investment Portfolios
      4. Accounting for Investments in Debt Securities
      5. Transfers of Debt Securities among Portfolios
      6. The Equity Method of Accounting for Investments
    5. Procedures
      1. Funds Investment Procedure
      2. Transfers between the Available-for-Sale and Trading Portfolios
      3. The Equity Method of Accounting for Investments
    6. Controls
      1. Transfers between Available-for-Sale and Trading Investments
      2. Transfers of Debt Securities among Portfolios
      3. The Equity Method of Accounting for Investments
    7. Forms and Reports
      1. Investment Approval Form
      2. Bond Ledger Sheet
      3. Stock Ledger Sheet
      4. Report on Investment Position
      5. Report on Amortization of Allocated Asset Valuation
    8. Footnotes
      1. Disclosure of Cash Deposits in Excess of FDIC Insurance Limits
      2. Disclosure of Change in Reported Method of Investment
      3. Disclosure of Investments
      4. Disclosure of Reduction in Market Value of Equity Investments
      5. Disclosure of Increase in Value of a Written-Down Held-to-Maturity Investment
      6. Disclosure of Sale of Held-to-Maturity Investments
      7. Disclosure of Changes in Investment Fair Value After Balance Sheet Date
      8. Disclosure of Shifts between Securities Accounts
      9. Disclosure of Nonstandard Reported Method of Investment
      10. Disclosure of Reduced Equity Method Investment
      11. Disclosure of Reduction in Equity Method Investment
    9. Journal Entries
      1. Accounting for Marketable Equity Securities
        1. Initial investment designated as held-for-trading
        2. Initial investment designated as available-for-sale
        3. Gain or loss on investment designated as held-for-trading
        4. Gain or loss on investment designated as available-for-sale
        5. Impairment in value of equity investments classified as available-for-sale
      2. Transfers of Equity Securities between Available-for-Sale and Trading Portfolios
        1. Shift investment designation from a trading security to an available-for-sale security
        2. Shift investment designation from an available-for-sale security to a trading security
      3. Accounting for Investments in Debt Securities
        1. Initial investment designated as held-for-trading
        2. Initial investment designated as available-for-sale
        3. Initial investment designated as held-to-maturity
        4. Gain or loss on debt investment designated as held-for-trading
        5. Gain or loss on debt investment designated as available-for-sale
        6. Impairment in value of debt investments classified as held-to-maturity
      4. Transfers of Debt Securities among Portfolios
        1. Shift investment designation from the available-for-sale debt security portfolio to the trading debt security portfolio
        2. Shift investment designation from the available-for-sale debt security portfolio to the held-to-maturity debt security portfolio
        3. Shift investment designation from the held-to-maturity debt security portfolio to the available-for-sale debt security portfolio
        4. Shift investment designation from the held-to-maturity debt security portfolio to the held-for-trading debt security portfolio
      5. The Equity Method of Accounting for Investments
        1. Investment (equity method)
        2. Investment (equity method), record share of investee income
        3. Investment (equity method), record dividends from investee
        4. Investment (equity method), record periodic amortization of incremental increase in investee assets due to allocation of excess purchase price
        5. Investment (equity method), sale of investment at a gain
        6. Investment (equity method), sale of investment at a loss
    10. Recordkeeping
  14. 8. Business Combinations and Consolidated Financial Statements
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. General Concepts
      2. Determining the Fair Value of Acquiree Assets
      3. Identification and Evaluation of Intangible Assets
      4. Goodwill Impairment Testing
      5. Contingent Consideration
      6. Noncontrolling Interests
      7. Leveraged Buyouts
      8. Reverse Acquisitions
      9. Spin-Off Transactions
      10. Disposal of a Business Segment
      11. Consolidation Requirements
      12. Variable Interest Entities
    3. Decision Trees
      1. Determination of Control in a Leveraged Buyout
    4. Policies
    5. Procedures
    6. Controls
    7. Forms and Reports
      1. Impairment Testing with Expected Present Value Form
    8. Footnotes
    9. Journal Entries
      1. Initial purchase transaction
      2. Negative goodwill offset
      3. Write-off of impaired goodwill
      4. Increased investment in subsidiary
      5. Spin-off of subsidiary
  15. 9. Current Liabilities and Contingencies
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Current Liabilities—Presentation
      2. Current Liabilities—Advances
      3. Current Liabilities—Bonuses
      4. Current Liabilities—Commissions
      5. Current Liabilities—Compensated Absences
      6. Current Liabilities—Debt
      7. Current Liabilities—Employee Terminations
      8. Current Liabilities—Property Taxes
      9. Current Liabilities—Royalties
      10. Current Liabilities—Wages
      11. Current Liabilities—Warranty Claims
      12. Contingencies
      13. Contingencies—Debt Covenant Violation
      14. Contingencies—Debt Guarantees
      15. Contingencies—Guaranteed Minimum Option Price
    3. Policies
      1. Current Liabilities
    4. Procedures
      1. Current Liabilities—Accounts Payable
    5. Controls
      1. Current Liabilities
      2. Contingencies
    6. Forms and Reports
      1. Current Liabilities—Commission Calculation Worksheet
      2. Current Liabilities—Wage Accrual Spreadsheet
      3. Current Liabilities—Royalty Calculation Spreadsheet
      4. Current Liabilities—Vacation Accrual Spreadsheet
    7. Footnotes
      1. Disclosure of Collective Bargaining Agreements
      2. Disclosure of Contingent Asset Purchase Obligation
      3. Disclosure of Contingent Liabilities
      4. Disclosure of Employment Contract Liabilities
      5. Disclosure of Gain Contingencies
      6. Disclosure of Geographic Risk
      7. Disclosure of Government Investigation
      8. Disclosure of Indebtedness Guarantees
      9. Disclosure of Industry Risk
      10. Disclosure of Litigation
      11. Disclosure of Outsourced Production Liability
      12. Disclosure of Postemployment Benefits
      13. Disclosure of Purchasing Commitments
      14. Disclosure of Reseller Liability
      15. Disclosure of Royalty Payments
      16. Disclosure of Self-Insurance Liability
      17. Disclosure of No Insurance
      18. Disclosure of Supplier Concentration Risk
      19. Disclosure of Taxation Disputes
      20. Disclosure of Unasserted Claims
      21. Disclosure of Vacation Liability
      22. Disclosure of Warranty Liabilities
    8. Journal Entries
      1. Current Liabilities
        1. Accrue benefits
        2. Accrue bonuses
        3. Accrue commissions
        4. Accrue property taxes
        5. Accrue royalties
        6. Accrue salaries and wages
        7. Accrue vacation pay
        8. Accrue warranty claims
        9. Record customer advances
      2. Contingencies
        1. Recognition of minimum option price
    9. Recordkeeping
  16. 10. Long-Term Debt
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Overview of Bonds
      2. Debt Classification
      3. Bonds Sold at a Discount or Premium to Their Face Value
      4. Effective Interest Method
      5. Debt Issued with No Stated Interest Rate
      6. Debt Issuance Costs
      7. Notes Issued with Attached Rights
      8. Notes Issued for Property
      9. Extinguishment of Debt
      10. Scheduled Bond Retirement
      11. Convertible Debt
      12. Convertible Debt Issued in the Money
      13. Convertible Debt—Accrued but Unpaid Interest on Converted Debt
      14. Convertible Debt—Subsequent Change in Offering to Induce Conversion
      15. Debt Issued with Stock Warrants
    3. Decision Trees
    4. Policies
      1. Notes and Bonds
      2. Extinguishment of Debt
      3. Convertible Debt
      4. Debt Issued with Stock Warrants
    5. Procedures
      1. Notes and Bonds—Borrowing Short-Term Funds
      2. Notes and Bonds—Loan Collateralization Report
      3. Effective Interest Method
      4. Extinguishment of Debt
      5. Convertible Debt
      6. Debt Issued with Stock Warrants
    6. Controls
      1. Notes and Bonds
      2. Effective Interest Method
      3. Extinguishment of Debt
      4. Convertible Debt
    7. Forms and Reports
      1. Notes and Bonds—Loan Borrowing/Paydown Form
      2. Notes and Bonds—Loan Collateralization Report
      3. Notes and Bonds—Bond Status Report
    8. Footnotes
      1. Disclosure of Loans
      2. Disclosure of Loan Guarantees
      3. Disclosure of Unused Credit Facilities
      4. Disclosure of Related-Party Loans
      5. Disclosure of Loan Acceleration
      6. Disclosure of Callable Obligations
      7. Disclosure of Debt Restructuring
      8. Disclosure of Loan Reclassification
      9. Disclosure of Loan Extinguishment
      10. Disclosure of Convertible Debt
      11. Disclosure of Stock Warrants Issued with Debt
    9. Journal Entries
      1. Notes and Bonds
        1. Sale of bonds at a discount
        2. Sale of bonds at a premium
        3. Sale of debt issued with no stated interest rate
        4. Issuance of debt for cash and other rights
        5. Capitalization of debt issuance costs
        6. Notes issued for property
      2. Effective Interest Method
        1. Interest, imputed
      3. Extinguishment of Debt
        1. Repurchase of debt
        2. Repurchase of debt with subsequent gain in intrinsic equity value
        3. Repurchase of debt with subsequent loss in intrinsic equity value
        4. Asset transfer to eliminate debt
      4. Convertible Debt
        1. Record conversion of convertible debt to equity, book value method
        2. Record conversion of convertible debt to equity, market value method
        3. Record issuance of convertible debt with strike price already in the money
        4. Record issuance of convertible debt with strike price already in the money but contingent on a future event
        5. Record conversion to equity with accrued but unpaid interest expense
        6. Record conversion to equity following a sweetening of conversion feature
      5. Debt Issued with Stock Warrants
        1. Initial entry of bonds sale with attached warrants
    10. Recordkeeping
  17. 11. Leases
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Accounting for Leases—Lessee
      2. Accounting for Leases—Lessor
      3. Accounting for Operating Leases—Lessor
      4. Accounting for Sales-Type Leases—Lessor
      5. Accounting for Direct Financing Leases—Lessor
      6. Lease Terminations
      7. Lease Extensions
      8. Subleases
      9. Sale-Leaseback Transactions
    3. Decision Trees
    4. Policies
      1. Accounting for Leases—Lessee
      2. Lease Terminations
    5. Procedures
      1. Accounting for a Capital Lease—Lessee
      2. Accounting for a Sales-Type Lease—Lessor
      3. Accounting for a Direct Financing Lease—Lessor
    6. Controls
      1. Accounting for Leases—Lessee
      2. Accounting for Leases—Lessor
      3. Lease Terminations
    7. Forms and Reports
      1. Lease Payments Report
      2. Lease Termination Report
    8. Footnotes
      1. Disclosure of Leases by Lessees
      2. Disclosure of Lease Termination Costs
      3. Disclosure of Sale and Leaseback Transactions
      4. Disclosure of Leases with Related Parties
      5. Disclosure of Treatment of Free Rent Periods
      6. Disclosure of Sublease Rentals
      7. Disclosure of Operating Leases by Lessor
      8. Disclosure of Direct Financing and Sales-Type Leases by Lessor
    9. Journal Entries
      1. Accounting for Leases—Lessee
        1. Lease, capital (initial record by lessee)
      2. Accounting for Leases—Lessor
        1. Initial lease record by lessor (sales-type lease)
        2. Receipt of cash payments by lessor (sales-type lease)
        3. Recording of periodic interest revenue by lessor (sales-type lease)
        4. Return of asset to lessor at end of lease (sales-type lease)
        5. Initial lease record by lessor (direct financing lease)
        6. Receipt of cash payments by lessor (direct financing lease)
        7. Recording of periodic interest revenue by lessor (direct financing lease)
        8. Return of asset to lessor at end of lease (direct financing lease)
      3. Lease Extensions
        1. Conversion of a capital lease to an operating lease
      4. Sale-Leaseback Transactions
        1. Sale-leaseback transactions for the lessee (capital lease)
    10. Recordkeeping
  18. 12. Pensions and Other Postretirement Benefits
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
    3. Policies
    4. Controls
    5. Footnotes
    6. Journal Entries
      1. Record net pension cost
      2. Contribution to pension plan
      3. Record required minimum liability
      4. Record postretirement benefits
  19. 13. Stockholders’ Equity
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. Legal Capital and Capital Stock
      2. Convertible Preferred Stock
      3. Stock Splits
      4. Stock Subscriptions
      5. Retained Earnings
      6. Stock Warrants
      7. Dividends
      8. Treasury Stock
      9. Options
      10. Option Vesting Period
      11. Stock Appreciation Rights
      12. Employee Stock Ownership Plans
    3. Decision Trees
      1. Dividends—Recording of Different Types
    4. Policies
      1. Legal Capital and Capital Stock
      2. Stock Subscriptions
      3. Dividends
      4. Treasury Stock
      5. Options
      6. Stock Appreciation Rights
      7. Employee Stock Ownership Plan (ESOP)
    5. Procedures
      1. Issue Capital Stock
      2. Manage Stock Subscriptions (Employees)
      3. Issue Property Dividends
      4. Treasury Stock—Record Gains and Losses on Resale of Treasury Stock
      5. Treasury Stock—Shares Repurchased under a Greenmail Agreement
      6. Options—Measurement Using SFAS 123 Requirements
      7. Options—Remeasurement on Option Extension Date (APB 25 Approach)
    6. Controls
      1. Legal Capital and Capital Stock
      2. Stock Subscriptions
      3. Retained Earnings
      4. Dividends
      5. Treasury Stock
      6. Stock Appreciation Rights
      7. Options
    7. Forms and Reports
      1. Legal Capital and Capital Stock
      2. Stock Subscriptions
      3. Stock Option Detail Report
      4. Stock Appreciation Rights
    8. Footnotes
      1. Disclosure of Capital Structure
      2. Disclosure of Subsequent Equity Transactions
      3. Disclosure of Change in the Number of Authorized Shares
      4. Disclosure of Stock Sale
      5. Disclosure of Stock Subscriptions
      6. Disclosure of Converted Bonds
      7. Disclosure of Redeemable Preferred Shares
      8. Disclosure of Cash Dividends
      9. Disclosure of Noncash Dividends
      10. Disclosure of Dividends Deferred
      11. Disclosure of Employee Stock Ownership Plan
      12. Disclosure of Employee Stock Purchase Plan
      13. Disclosure of New Type of Stock
      14. Disclosure of Par Value Change
      15. Disclosure of Retained Earnings Segregation
      16. Disclosure of Reserved Stock
      17. Disclosure of Stock Repurchase Program
      18. Disclosure of Treasury Stock Held
      19. Disclosure of Greenmail Stock Repurchase
      20. Disclosure of Sale of Treasury Stock
      21. Disclosure of Stock Compensation
      22. Disclosure of Stock Contribution
      23. Disclosure of Stock Redemption Agreements
      24. Disclosure of Stock Splits
      25. Disclosure of Stock Options
      26. Disclosure of Stock Option Repricing
      27. Disclosure of Stock Appreciation Rights (SAR)
      28. Disclosure of Warrants Issued
    9. Journal Entries
      1. Legal Capital and Capital Stock
        1. Initial sale of stock
        2. Netting of stock issuance costs against sale proceeds
        3. Stock issued for services rendered or goods received
        4. Conversion of preferred stock to common stock
        5. Stock split with no change in par value
      2. Stock Subscriptions
        1. Stock subscription, initial entry
        2. Stock subscription, payment of
      3. Warrants
        1. Initial entry of bonds sale with attached warrants
      4. Dividends
        1. Dividend declaration, cash payment
        2. Dividend declaration, property dividend
        3. Dividend payment, property dividend
        4. Dividend declaration, small stock dividend
        5. Dividend declaration, large stock dividend
        6. Dividend declaration, scrip dividend
        7. Dividend declaration, liquidating
        8. Dividend payment in cash
      5. Treasury Stock
        1. Treasury stock, purchase under the cost method
        2. Treasury stock, retirement under the cost method
        3. Treasury stock, sale at price higher than acquisition price
        4. Treasury stock, sale at price lower than acquisition price
        5. Treasury stock, purchase under the constructive retirement method
        6. Treasury stock, repurchase under a greenmail agreement
      6. Options
        1. Options issued with strike price below the market price
        2. Options earned over time
        3. Options used to purchase shares
        4. Options lapsed (APB 25 approach)
        5. Options lapsed (SFAS 123 approach)
        6. Options purchased by the company (SFAS 123 approach)
      7. Stock Appreciation Rights (SAR)
        1. Record increase in value of SAR grant payable in cash
        2. Record increase in SAR grant payable in stock
        3. Record exercise of SAR grant payable in cash
        4. Record exercise of SAR grant payable in stock
      8. Employee Stock Ownership Plan (ESOP)
        1. Incurrence of loan to purchase shares
        2. Purchase of shares by ESOP from sponsoring company
        3. Payments against note payable by ESOP
        4. Dividends declared on shares held by ESOP
    10. Recordkeeping
  20. 14. Interim Reporting
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
    3. Policies
    4. Procedures
    5. Controls
    6. Footnotes
    7. Recordkeeping
  21. 15. Segment Reporting
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
    3. Decision Trees
    4. Policies
    5. Procedures
      1. Segment Determination Procedure
      2. Major Customer Reporting Procedure
    6. Controls
    7. Footnotes
  22. 16. Foreign Currency
    1. Definitions of Terms
      1.  
    2. Concepts and Examples
      1. The Current Rate Method
      2. The Remeasurement Method
      3. Translation of Foreign Currency Transactions
      4. Exchange Rates Used for Calculations
      5. Intercompany Transactions
    3. Decision Trees
    4. Policies
      1. Translation of Foreign Currency Financial Statements
      2. Translation of Foreign Currency Transactions
    5. Procedures
      1. Financial Statement Translation—Highly Inflationary Economy Determination
      2. Application of the Current Rate Method
      3. Application of the Remeasurement Method
      4. Translation of Foreign Currency Transactions
    6. Controls
      1. Translation of Foreign Currency Financial Statements
      2. Translation of Foreign Currency Transactions
    7. Forms and Reports
      1. Translation of Foreign Currency Financial Statements
    8. Footnotes
    9. Journal Entries
      1. Translation of Foreign Currency Financial Statements
        1. Financial statement translation adjustment
      2. Translation of Foreign Currency Transactions
        1. Translation of foreign currency transactions
        2. Recognition of the sale of a foreign subsidiary
    10. Recordkeeping

Product information

  • Title: GAAP Policies and Procedures, Second Edition
  • Author(s): Colorado Steven M. Bragg Englewood
  • Release date: April 2007
  • Publisher(s): Wiley
  • ISBN: 9780470081839