ASC 205comparative analysisDiscontinued Operationsfinancial statementsinvestment analystsliquidation basisAccounting Standards Codification (ASC) 205, Presentation of Financial Statements, is divided into four
•ASC205-20,DiscontinuedOperations,whichprovidesguidance •Onreportingtheresultsofoperationswhenacomponentofanentityhasbeen disposedoforisclassifiedasheldforsaleand •Ontheallocationofinterestandoverheadofdiscontinuedoperations •ASC205-30,LiquidationBasisofAccounting,whichisexpandeduponinthe technicalalertbelow...
asc 985-20: Costs of Software to Be Sold, Leased, or Marketed –> SFAS 86, August 1985 –> “Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed” asc 985-605: Software Revenue Recognition –> AICPA SOP 97-2 –> “Software Revenue Recognition” asc ...
Foreign Currency Transactions and Translation SFAS 52, December 1981 “Foreign Currency Translation” Functional currency 1. Functional currency –> the currency of the primary economic environment –> of the entity 2. Accounting transactions are measured and recorded in functional currency Reporting curren...
1. Recognized in the financial statements 2. Disclosed in the notes Recognized in the financial statements –> if both (A) and (B) are satisfied (A) it is “probable” that a loss will incur (B) amount of loss can be reasonably estimated ...
1. Mandatorily redeemable financial instruments –> classified as a liability –> asc 480-10-25-4 2. Obligations to repurchase the issuer’s equity shares by transferring assets –> classified as a liability –> asc 480-10-25-8 Examples: ...
(D) change in caption amount ≤ 20% of corresponding interim period of preceding fiscal year 5. Statement of cash flows 5a. it may begin with (1) (1) a single figure of net cash flows from operating activities 5b. cash changes from investing and financing activities are reported individuall...
Goodwill –> not amortized [asc 350-20-35-1] –> tested for impairment at the level of a reporting unit Impairment Loss –> two step approach –> step 1: impairment test for a reporting unit step 2: impairment test for goodwill ...