Companies may occasionally face challenges in meeting their debt obligations, leading to the need for debt restructuring. ASC 470-50, Debt - Modifications and Extinguishments, provides guidance on accounting for modifications and extinguishments of debt, including debt restructuring transactions. This article explains debt restructuring transactions under ASC 470-50, along with illustrative journal entries.
Financial guarantees are contractual agreements where one party assumes responsibility for a specified obligation of another party if the latter party fails to fulfill its obligation. ASC 460-10, Guarantees - Overall, provides guidance on accounting for financial guarantees and recognizing the associated liabilities. This article explains financial guarantee liability transactions under ASC 460-10, along with illustrative journal entries.
Real estate transactions are significant events for both buyers and sellers, often involving large sums of money and long-term commitments. ASC 360-20, Property, Plant, and Equipment - Real Estate Sales, provides guidance on accounting for real estate sales and the recognition of profit in such transactions. This article explains profit recognition under ASC 360-20, along with illustrative journal entries.
In today's technology-driven business environment, internal-use software is increasingly essential for improving efficiency and productivity. ASC 350-40, Intangibles - Goodwill and Other - Internal-Use Software, provides guidance on accounting for the costs associated with developing or obtaining internal-use software. This article explains the capitalization of development costs for internal-use software under ASC 350-40, along with illustrative journal entries.
Accounting Standards Codification (ASC) 718-20, "Stock Compensation – Employee Stock Purchase Plans," governs the accounting treatment for employee stock purchase plans (ESPPs) in the United States. ESPPs are a popular form of equity compensation that allow employees to purchase company stock at a discount through payroll deductions. This article explains the key provisions of ASC 718-20, its application, and the relevant journal entries for stock purchase transactions under ESPPs.