2000 Miller GAAP Financial Statement Disclosures Manual (With CD-ROM) - Softcover

9780156070751: 2000 Miller GAAP Financial Statement Disclosures Manual (With CD-ROM)

Softcover

ISBN 10: 0156070758 ISBN 13: 9780156070751

Publisher: Harcourt Brace Professional Pub

The 2001 Miller GAAP Financial Statement Disclosures Manual provides a complete, quick, and valuable reference source for financial statement disclosures. The Manual is divided into four major parts. Part I covers major financial accounting and reporting topics. The chapters in Part II, Balance Sheet, are arranged in the order in which the major assets, liabilities, and equity captions ordinarily appear in a balance sheet. For example, assets and liabilities are discussed first in general, then cash and cash equivalents, and so on. Part III covers the specific elements of "results of operations" that are required to be presented separately under GAAP. Part IV discusses the presentation of specific types of transactions in cash flow statements, alternative formats for presenting the statements, and the disclosure of noncash transactions.

"synopsis" may belong to another edition of this title.

About the Author

George Georgiades, CPA, has more than 19 years of experience in public accounting, including seven years as an audit senior manager with a major national firm. He currently has his own firm and consults exclusively with CPA firms on technical accounting, auditing, and financial statement disclosure issues. In writing this Manual, Mr. Georgiades has capitalized on the extensive experience he has gained from association with clients and with international, national, regional, and local accounting firms. He has been involved personally in more than 600 audit engagements and related financial statements of both small, closely held companies and large, publicly held enterprises. He has personally conducted more than 50 peer reviews, consulting reviews, and inspections. He also brings to the Manual extensive hands-on experience in performing independent technical reviews of financial statements.

Mr. Georgiades is also the author of Miller Audit procedures and the Miller GAAS Update Service & CPE Program. He is a member of the American institute of Certified Public Accountants and the California Society of Certified Public Accountants.

Excerpt. � Reprinted by permission. All rights reserved.

ACCOUNTING CHANGES

Accounting changes are broadly classified into the following three categories:
1. Changes in an accounting principle
2. Changes in an accounting estimate
3. Changes in the reporting entity

Corrections of errors in previously issued financial statements are not accounting changes, but they are covered in the same accounting literature because of their similarity.

Promulgated generally accepted accounting principles (GAAP) identify three accounting methods to account for accounting changes and corrections of errors: (1) current and prospective method, (2) cumulative effect method, and (3) retroactive restatement method. These methods are not alternatives--the authoritative literature is specific concerning which method is to be used for each type of accounting change or correction of error.

Common changes in accounting principles include the following:
1. Changing the method of pricing inventory (e.g., changing from LIFO to FIFO or from FIFO to LIFO)
2. Changing the method of depreciating previously recorded assets (e.g., changing from a straight-line method to an accelerated method or from an accelerated method to a straight-line method)
3. Changing the method of accounting for long-term construction-type contracts
4. Adopting a new accounting principle

A change in an accounting estimate usually is the result of new events, changing conditions, more experience, or additional information, any of which requires previous estimates to be revised. Estimates are necessary in determining depreciation and amortization of long-lived assets, uncollectible receivables, provisions for warranty, and a multitude of other items involved in preparing financial statements.

"About this title" may belong to another edition of this title.