U.S. GAAP: A Practical Implementation Guide for Preparation of Reporting Packages and Other Financial Reports in US GAAP

This book is updated with New FASB Codification and includes measurement and disclosure requirements for SEC Registrants, Foreign Private Issuers and other US GAAP preparers. This comprehensive guide published by Watson provides excellent guidance and clarity for practical application and understanding of the main concepts of US GAAP (Generally Accepted Accounting Practices in the US). This book offers practical application to complex concepts in US GAAP in a variety of situations which may arise in practice. As a result, it simplifies the application of US GAAP standards and interpretations specific to real-world situations. The book is divided by large areas of accounting; Includes practical approach to illustrate the main differences in GAAP that you need to know to make your conversion project easier; you save time by going straight to the point to understand the main concepts in an objective and concise way; includes requirements for measurement / disclosure US SEC Registrants; Can be used as a quick reference guide to US GAAP, which will enhance your understanding to all situations that may arise in practice; Has a simple guideline on interpretation and application of massive US GAAP standards; Formatted according to the new FASB Codification; Relevant work for the academic and professional fields; Includes several critical comments about disclosures required under US GAAP. You will find many relevant aspects or accounting treatments that you need to know to apply the rules of US GAAP as a benchmark to ensure that your company applies the key concepts for major adjustments and differences objectively.

Table of Contents:
1. Introduction to US GAAP 9 1.1. Setting GAAP 10 1.2 The new FASB Accounting Standards Codification TM 12 1.1. The FASB Concepts Statements 35 2. Components of the financial statements under US GAAP 37 3. Materiality guidelines 38 4. Definition of the reporting period under US GAAP 44 5. Presentation of comparative information 44 6. The principle of substance over form 45 7. A true and fair view 45 8. Definition of assets and liabilities 49 9. Statement of financial position 50 10. Presentation of comprehensive income and changes in equity 52 11. Recognition in other comprehensive income 55 11.1 Specific items of profit or loss and Format of the statement of comprehensive income 56 12. Statement of cash flows and definition of cash and cash equivalents 58 12.1 Operating, investing and financing activities 60 12.2 Direct versus indirect method 61 12.3 Interest and dividends 61 12.4 Income taxes 61 12.5 Hedging instruments 62 12.6 Foreign currency differences 62 12.7 Offsetting 62 12.8 Assets held for rental and subsequently held for sale 62 12.9 Changes in ownership interests 63 13. Statement of changes in equity 63 14. Preparation of consolidated financial statements 63 15. Consolidation and non-controlling 64 15.1 Intra-group transactions 65 15.2 Common control transactions 70 15.3 Transactions with shareholders 73 15.4 Control model - Special purpose entities (SPEs) 73 16 Investment in Associates and joint ventures 78 16.1 Associates 78 16.2 Joint ventures 79 17. Business combinations 90 18. The modified historical cost convention 101 19. Investment property 101 20. Intangible assets and goodwill 105 21. Property, plant and equipment 114 22. Capitalization of borrowing costs 120 23. Non-monetary transactions - Exchanges of property, plant and equipment and intangible assets 122 24. Non-current assets held for sale and held for sale or distribution and discontinued operations 125 25. Leases 131 25.1 Introduction to lease accounting 131 25.2 Advantages of Leasing 132 25.3 Other characteristics of Lease arrangements 134 25.3 Views on capitalization of leases 137 25.4 Capital leases 138 25.5 Operating leases 144 25.6 Sales-type lease 145 25.7 Accounting requirements 146 25.8 Sale-leaseback transactions 147 26. Impairment 149 27. Inventories 157 28. Financial instruments 157 28.1 Definition of a financial asset 167 28.2 Definition of a financial liability 168 28.3 Securities 168 28.4 Derivatives 169 28.5 Embedded derivatives 175 28.6 Derecognition of financial assets and liabilities 178 28.7 Impairment of financial assets 184 28.8 Hedging 188 28.8.1 The three types of hedge 188 28.8.2 The minimum conditions for hedge accounting 192 28.8.3 Hedge effectiveness 196 28.8.4 Discontinuation of hedge accounting 199 28.9 Debt or equity classification 200 28.10 Disclosures about Financial instruments 208 29. Government Grants 210 30. Provisions 213 31. Contingent assets and liabilities 221 32. Employee benefits 222 33. Share-based payments 234 34. Income taxes 247 35. Foreign currency translation 257 36. Hyperinflation 263 37. Insurance contracts 264 38. Specific disclosure requirements under US GAAP 268 38.1 Capital disclosure 268 38.2 Restatements and retrospective adjustments 269 38.3 Judgments and estimation - disclosures required for SEC registrants 269 39. Accounting policies, errors and estimates 269 40. Events after the balance sheet date 272 41. Segment reporting 274 42. Earnings per share 276 43. Revenue recognition principles 285 44. Recognition of Interest income and expense 304 44.1 Calculation of the effective interest rate and amortized cost 304 44.2 Changes in estimated future cash flows 311 44.3 Transaction costs 313 44.4 Dividend income 314 45. Interim financial reporting 315 46. Disclosures of transactions with related parties 321 47. Biological assets 321 48. Evaluation of mineral resources 321 49. Specific disclosure requirements for SEC Registrants 322 50. The Laws that govern the Securities industry in the U.S. 323 51. The SEC Forms List 328 52. Electronic Data Gathering (EDGAR) 338