The ASC 450 accounting standard, established by the Financial Accounting Standards Board (FASB), provides guidance on the accounting for contingencies, such as warranty liabilities. In this article, we will provide an overview of warranty liability accounting under ASC 450 and illustrate how journal entries can be used to account for transactions involving warranty liabilities.
The ASC 820 accounting standard, established by the Financial Accounting Standards Board (FASB), provides guidance on how companies should measure fair value for financial reporting purposes. One key aspect of ASC 820 is the classification of valuation inputs into three levels, with Level 3 inputs being the least observable and most subjective. In this article, we will provide an overview of Level 3 inputs under ASC 820 and illustrate how journal entries can be used to account for transactions involving these inputs.
The ASC 805 accounting standard, established by the Financial Accounting Standards Board (FASB), governs the accounting for business combinations. One crucial aspect of ASC 805 is the allocation of the purchase price to the acquired assets and assumed liabilities. In this article, we will provide an overview of purchase price allocation transactions under ASC 805 and illustrate how journal entries can be used to account for them.
The ASC 718 accounting standard, established by the Financial Accounting Standards Board (FASB), governs the accounting for stock-based compensation, including stock options. Stock options are a popular form of equity compensation that grants employees the right to purchase company shares at a predetermined price, known as the exercise price. In this article, we will provide an overview of stock option grant transactions under ASC 718 and illustrate how journal entries can be used to account for them.
The ASC 350 accounting standard, established by the Financial Accounting Standards Board (FASB), governs the accounting for intangible assets, such as goodwill and other intangible assets. One critical aspect of ASC 350 is the requirement for businesses to perform impairment testing on these assets periodically. In this article, we will provide an overview of impairment testing transactions under ASC 350 and illustrate how journal entries can be used to account for them.