Development stage entities are companies in their early stages of operations that have not yet generated significant revenues or begun planned principal operations. These entities face unique accounting challenges, particularly in relation to the capitalization of pre-opening costs. The Accounting Standards Codification (ASC) 915, specifically addresses the accounting and reporting practices for development stage entities. In this article, we will explore ASC 915, focusing on the capitalization of pre-opening costs, and explain how to record these transactions using journal entries.
The valuation of agricultural produce inventory is a significant aspect of financial accounting for companies involved in the agriculture sector. The Accounting Standards Codification (ASC) 905-330, specifically deals with the accounting and reporting of inventory related to agricultural produce. This article will provide an in-depth understanding of ASC 905-330 inventory, the methods for agricultural produce valuation, and how to record these transactions using journal entries.
In today's digital era, software products are an integral part of many businesses and consumer applications. The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 985-605, "Software - Revenue Recognition," provides guidance on the accounting for revenue from software licensing arrangements. This article will explore the guidelines for recognizing software licensing revenue under ASC 985-605 and provide examples of journal entries to illustrate the accounting process for software companies.
Health and welfare benefit plans are an essential part of employee compensation packages, providing benefits such as medical, dental, and life insurance coverage. The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 965, "Plan Accounting - Health and Welfare Benefit Plans," governs the accounting for these plans. One of the key aspects of ASC 965 is the recognition of incurred claims. This article will explore the guidelines for recognizing incurred claims under ASC 965 and provide examples of journal entries to illustrate the accounting process for health and welfare benefit plans.
Defined benefit pension plans are complex financial arrangements that require accurate accounting to ensure their long-term stability and solvency. The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 960, "Plan Accounting - Defined Benefit Pension Plans," provides guidance on accounting for these plans. One key aspect of ASC 960 is the treatment of actuarial gains and losses. This article will explore the guidelines for recognizing actuarial gains and losses under ASC 960 and provide examples of journal entries to illustrate the accounting process for defined benefit pension plans.