Accounting Standards Codification (ASC) Topic 850, Related Party Disclosures, provides guidance on the disclosure of related party transactions in financial statements under Generally Accepted Accounting Principles (GAAP). Related parties are entities or individuals that have control, joint control, or significant influence over an entity or are subject to common control. This article will explore the key aspects of ASC 850, intercompany transactions, and provide examples of journal entries to help you better understand the accounting treatment and disclosure requirements.
Accounting Standards Codification (ASC) Topic 835, Interest, addresses the accounting for interest costs under Generally Accepted Accounting Principles (GAAP). One important aspect of ASC 835 is the recognition of imputed interest on noninterest-bearing notes. Imputed interest is the interest rate that the market would expect to earn on a similar note with interest. This article will explore the key aspects of imputed interest on noninterest-bearing notes under ASC 835 and provide examples of journal entries to help you better understand the accounting treatment.
Accounting Standards Codification (ASC) Topic 810, Consolidation, addresses the accounting for consolidated financial statements under Generally Accepted Accounting Principles (GAAP). A critical aspect of ASC 810 is the consolidation of variable interest entities (VIEs), which are legal entities with insufficient equity at risk to finance their activities without additional financial support. This article explores the key aspects of VIE consolidation under ASC 810 and provides examples of journal entries to help you better understand the accounting treatment.
The Accounting Standards Codification (ASC) Topic 405-20, part of the Generally Accepted Accounting Principles (GAAP), provides guidance on the accounting for the extinguishment of liabilities. This topic specifically covers the settlement of debt with creditors, detailing the process and conditions necessary to recognize the extinguishment of debt. In this article, we will explore the key aspects of ASC 405-20, the debt settlement process, and provide examples of journal entries to help you better understand the accounting treatment.
Accounting Standards Codification (ASC) 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets, provides guidance on the accounting treatment of gains and losses resulting from the sale or disposal of nonfinancial assets. This standard is crucial for entities that sell or dispose of nonfinancial assets, as it ensures consistent accounting treatment for these transactions. In this article, we will discuss the key aspects of ASC 610-20 and provide examples of journal entries to illustrate the accounting treatment of asset sale transactions.