Wiley GAAP 2013 is a thorough study and analysis of all generally accepted accounting principles (GAAP) set forth in the pronouncements of the FASB (Financial Accounting Standards Board) and its predecessor agencies. Additionally, this useful guide contains AICPA Accounting Standards Executive Committee (ASEC) Statements of position. All pronouncements are explained with relevant terminology and practice-oriented real world examples. Each chapter is composed of a discussion of perspectives and issues, sources of GAAP, a definition of terms, concepts, rules and examples, and for some chapters, specific appendices.

Preface vii

About the Author ix

About the Online Resources xi

Codification Taxonomy xiii

1 Researching GAAP Matters 1

2 Statement of Financial Position 27

3 Statements of Income and Comprehensive Income 53

4 Statement of Cash Flows 87

5 Accounting Policies, Changes, and Restatements 105

6 Fair Value 137

7 Cash, Receivables, and Prepaid Expenses 171

8 Transfers and Servicing of Financial Assets 197

9 Investments—Debt and Equity 235

10 Derivatives and Hedging 263

11 Inventory 317

12 Revenue Recognition—Evolving Principles and Specialized

Applications 359

Revenue Recognition—General Principles 361

Long-Term Construction Contracts 369

Service Revenues 384

Sales When Collection Is Uncertain 392

Revenue Recognition When Right of Return Exists 399

Profit Recognition on Real Estate Sales 403

Real Estate Operations 424

Franchising: Accounting by Franchisors 429

Other Special Accounting and Reporting Issues 433

13 Intangibles—Goodwill and Other 445

14 Property, Plant, and Equipment 465

15 Investments—Equity Method and Joint Ventures 511

16 Investments—Other 545

17 Business Combinations and Consolidated Financial Statement 555

18 Collaborative Arrangements 633

19 Current Liabilities and Contingencies 643

20 Long-Term Liabilities 669

21 Leases 719

22 Research and Development 793

23 Nonmonetary Transactions 799

24 Income Taxes 809

25 Compensation—Retirement Benefits 881

26 Compensation—Stock Compensation 925

27 Stockholders’ Equity 959

28 Earnings Per Share 1005

29 Interim Reporting 1035

30 Segment Reporting 1049

31 Foreign Currency 1059

32 Personal Financial Statements 1089

33 Specialized Industry GAAP 1097

Appendix A: Disclosure Checklist for Commercial Businesses 1203

Index 1285