Updated for new accounting and auditing guidance issued, this valuable tool provides hundreds of high quality disclosure examples from carefully selected U.S. companies of different sizes, across industries such as banking, credit and insurance, communication services, and healthcare from such organizations as Scotts Miracle–Gro, Coca–Cola, Caterpillar, and BB&T.
Illustrations of the most important, immediate, and challenging disclosures, such as derivatives and hedging, consolidations, and fair value measurement are provided. Hot topics include statement of cash flows, going concern, and business combinations and intangibles. This edition also provides clear, direct guidance to help you understand and comply with all significant reporting requirements and detailed indexes to help you quickly find exactly what you need.Table of Contents
1 General Topics 01 134
Survey Entities 01 02
General Financial Statement Considerations 03 30
RecognitionandMeasurement 03 08
Presentation 09 13
Disclosure 14 19
PresentationandDisclosure Excerpts 20 30
Quarterly FinancialData 20
SelectedInformationfor FiveYears 21
Forward–LookingInformation 22
Liquidity andCapitalResources 23
NewAccountingStandards 24
MarketRisk Information 25
CriticalAccountingPolicies andEstimates. 26
Summaryof SignificantAccountingPolicies 27
NatureofOperations 28
Useof Estimates 29
Vulnerability due to Certain Concentrations 30
SegmentReporting 31 36
Presentation 31 34
PresentationandDisclosure Excerpts 35 36
Segment Information 35 36
AccountingChanges andError Corrections 37 61
Presentation 37 43
Disclosure 44
PresentationandDisclosure Excerpts 45 61
Change inAccountingPrinciple Inventory. 45
Change in Accounting Principle Defined Benefit Pension and Other Postretirement Benefit Plans 46
Change inAccountingPrinciple DiscontinuedOperations 47
Change inAccountingPrinciple Variable Interest Entities 48
Change inAccountingPrinciple NetAssetValue. 49
Change inAccountingPrinciple Interest–Imputationof Interest 50
Change in Accounting Principle Simplifying the Accounting for Measurement–Period Adjustments 51
Change inAccountingPrinciple DeferredTaxes (ProspectiveApproach) 52
Change inAccountingPrinciple DeferredTaxes (RetrospectiveApproach) 53
Change inAccountingPrinciple DebtValuationAdjustments 54
Change inAccountingPrinciple Share–BasedPaymentAccounting 55
Change inAccountingPrinciple Statementof CashFlows 56
Change inAccountingPrinciple Successful EffortsMethodofAccounting. 57
Change inAccountingEstimates 58 59
Correctionof Errors 60 61
Consolidation 62 74
RecognitionandMeasurement 62 67
Presentation 68 69
Disclosure 70 72
PresentationandDisclosure Excerpts 73 74
Consolidation 73 74
Business Combinations 75 80
RecognitionandMeasurement 75
Disclosure 76 78
PresentationandDisclosure Excerpts 79 80
Business Combinations 79 80
Commitments 81 84
Disclosure 81
PresentationandDisclosure Excerpts 82 84
Restrictive Covenants 82 83
LeaseAgreements 84
Contingencies 85 94
RecognitionandMeasurement 85 87
PresentationandDisclosure Excerpts 88 94
LegalMatters 88
Tax Contingencies 89
EnvironmentalMatters 90
Insurance 91
GovernmentMatters 92
Guarantees 93
GainContingencies LitigationSettlements 94
Financial Instruments 95 107
RecognitionandMeasurement 95 96
Disclosure 97 103
Presentation and Disclosure Excerpts 104 107
Lineof Credit 104
Derivative Financial Instruments InterestRate SwapAgreements 105
Derivative Financial Instruments ForeignCurrency Contracts 106
Credit Facility 107
Fair Value 108 113
Recognition and Measurement 108 110
Disclosure 111 112
PresentationandDisclosure Excerpt 113
FairValueMeasurements 113
Subsequent Events 114 122
Recognition and Measurement 114 117
Disclosure 118 119
Presentation and Disclosure Excerpts 120 122
Debt 120
Merger 121
Acquisitions 122
Related Party Transactions 123 126
Disclosure 123
Presentation and Disclosure Excerpts 124 126
Transactions with Related Parties 124 126
Inflationary Accounting 127 129
Disclosure 127 128
PresentationandDisclosure Excerpt 129
InflationaryAccounting 129
Substantial Doubt About an Entity s Ability to Continue as a Going Concern 130 134
Recognition and Measurement 130 131
Disclosure 132 134
2 Balance Sheet and Related Disclosures 01 156
GeneralBalance Sheet Considerations 01 05
Presentation 01 03
Disclosure 04 05
CashandCashEquivalents 06 07
Presentation 06
Disclosure 07
Marketable Securities 08 20
RecognitionandMeasurement 08 10
Presentation 11
Disclosure 12 17
PresentationandDisclosure Excerpts 18 20
Marketable Securities Available–for–Sale Securities 18
Marketable Securities Held–to–Maturity (HTM) Securities 19
Marketable Securities TradingSecurities 20
CurrentReceivables 21 25
Presentation 21
Disclosure 22
PresentationandDisclosure Excerpts 23 25
Contracts 23
FinanceReceivables 24
Insurance Claims 25
Receivables Soldor Collateralized. 26 33
RecognitionandMeasurement 26 28
Disclosure 29 30
PresentationandDisclosure Excerpts 31 33
Receivables Soldor Collateralized 31 32
AccountsReceivable FactoringandSecuritization 33
Inventory 34 42
RecognitionandMeasurement 34 35
Presentation 36
Disclosure 37 38
PresentationandDisclosure Excerpts 39 42
First–inFirst–Out 39
Last–inFirst–Out 40
Average Cost 41
RetailMethod 42
Other CurrentAssets 43 49
Presentation 43
PresentationandDisclosure Excerpts 44 49
Advances 44
AssetsHeldfor Sale. 45
Costs and Estimated Earnings in Excess of Billings 46
Derivatives 47
PrepaidExpenses 48
Contracts 49
Property,Plant, andEquipment 50 58
RecognitionandMeasurement 50 51
Presentation 52 53
Disclosure 54 56
PresentationandDisclosure Excerpts 57 58
Property,Plant, andEquipment 57 58
EquityMethodandJointVentures 59 64
RecognitionandMeasurement 59
Presentation 60
Disclosure 61
PresentationandDisclosure Excerpts 62 64
EquityMethod 62
CostMethod 63
FairValue 64
NoncurrentReceivables 65 67
Presentation 65 66
PresentationandDisclosure Excerpt 67
Long–TermReceivables 67
IntangibleAssets 68 81
RecognitionandMeasurement 68 72
Presentation 73
Disclosure 74
PresentationandDisclosure Excerpts 75 81
Goodwill 75
Trademarks 76
CustomerRelationships 77
Technology 78
Software 79
Licenses 80
PurchasedIntangibleAssets 81
OtherNoncurrentAssets 82 91
RecognitionandMeasurement 82
Disclosure 83
PresentationandDisclosure Excerpts 84 91
AssetsofDiscontinuedOperations 84
DeferredIncome Taxes 85
RestrictedCashandInvestments 86
CashSurrenderValueof Life Insurance 87
Derivatives 88
Software 89
InsuranceRecoveries 90
Leases 91
Short–TermDebt 92 97
Presentation 92
Disclosure 93 95
PresentationandDisclosure Excerpts 96 97
Short–TermDebt 96
ConvertibleDebt 97
TradeAccountsPayable 98 100
RecognitionandMeasurement 98
Presentation 99
Disclosure 100
Employee–Related Liabilities 101 104
Presentation 101
Disclosure 102 103
PresentationandDisclosure Excerpt 104
Employee–Related Liabilities 104
Income Tax Liability 105 107
Presentation 105
Disclosure 106
PresentationandDisclosure Excerpt 107
Income TaxesPayable 107
Current Amount of Long–Term Debt 108 110
Presentation 108
Disclosure 109
PresentationandDisclosure Excerpt 110
CurrentAmountof Long–TermDebt 110
Other Current Liabilities 111 122
Presentation 111
Presentation and Disclosure Excerpts 112 122
Advances 112
Product Liability 113
Billings in Excess of Costs and Estimated Earnings 114
Liabilities Held for Sale 115
Insurance 116
DeferredRevenue 117
Environment 118
Litigation 119
Derivatives 120
Claims andDiscounts 121
AssetRetirementObligations 122
Long–Term Debt 123 130
Presentation 123 124
Disclosure 125 126
Presentation and Disclosure Excerpts 127 130
Unsecured 127
Collateralized 128
Convertible 129
Debt Issuance Costs. 130
Credit Agreements 131 132
Disclosure 131
PresentationandDisclosure Excerpt 132
CreditAgreements 132
Long–Term Leases 133 139
RecognitionandMeasurement 133
Presentation 134 135
Disclosure 136
Presentation and Disclosure Excerpts 137 139
Lessee Leases 137 138
Lessor Leases 139
Other Noncurrent Liabilities 140 152
Presentation 140 143
Presentation and Disclosure Excerpts 144 152
DeferredIncome Taxes 144
UnrecognizedTaxBenefits 145
Insurance 146
Warranty 147
Environmental 148
AssetRetirementObligations 149
Litigation 150
Derivatives 151
DeferredRevenue 152
Accumulated Other Comprehensive Income 153 156
Presentation 153
Presentation and Disclosure Excerpts 154 156
AccumulatedOther Comprehensive Income Equity SectionofBalance Sheet 154
AccumulatedOther Comprehensive Income Statementof Stockholders Equity. 155
AccumulatedOther Comprehensive Income Notes toConsolidatedFinancial Statements 156
3 Income Statement 01 89
Income Statement Format 01 03
Presentation 01 02
PresentationandDisclosure Excerpt 03
Reclassifications 03
Revenues andGains 04 17
RecognitionandMeasurement 04 05
Disclosure 06
PresentationandDisclosure Excerpts 07 17
Revenues 07 08
Net Investment Income 09
Equity,Royalty andInterest Income fromInvestees 10
Equity inEarningsofAffiliatedCompanies 11
GainonAssetDisposals 12
GainonBusiness Combination 13
Litigation 14
Derivatives 15
InsuranceRecoveries 16
GainsonExtinguishmentofDebt 17
Expenses andLosses 18 40
Presentation 18
PresentationandDisclosure Excerpts 19 40
Selling, General, and Administrative 19
ResearchandDevelopment 20
Exploration 21
Advertising 22
Provisionfor Losses 23
Warranty 24
Interest 25
AccretiononAssetRetirementObligation. 26
ImpairmentofAssets 27
Restructuring 28
IntangibleAssetAmortization 29
LossonExtinguishmentofDebt 30
SoftwareAmortization 31
Litigation 32
Equity inLossofUnconsolidatedJointVentures 33
Environmental 34
SaleofAccountsReceivables 35
Mergers 36
Acquisition–RelatedCosts 37
Change inFairValueofDerivatives 38
Impairmentsof IntangibleAssets andGoodwill 39
ForeignCurrency 40
Pensions andOtherPostretirementBenefits 41 49
RecognitionandMeasurement 41
Disclosure 42 44
PresentationandDisclosure Excerpts 45 49
Pensions andOtherPostretirementBenefits 45
DefinedContributionPlans 46
Supplemental Retirement Plans (SERP) 47
Multi–EmployerPlans 48
PlanAmendment 49
PostemploymentBenefits 50 51
RecognitionandMeasurement 50
PresentationandDisclosure Excerpt 51
PostemploymentBenefits 51
Employee CompensatoryPlans 52 59
RecognitionandMeasurement 52
PresentationandDisclosure Excerpts 53 59
StockOptionPlans 53
Stock–BasedCompensation 54
Employee StockPurchasePlans (ESPP) 55
DeferredCompensationPlans 56
Incentive CompensationPlans 57
Employee StockOwnershipPlans (ESOP) 58
Profit SharingPlans 59
DepreciationExpense 60 66
RecognitionandMeasurement 60 61
Disclosure 62
PresentationandDisclosure Excerpts 63 66
Straight–Line andAcceleratedMethods 63 64
Units–of–ProductionMethod 65
Group–LifeMethodofDepreciation 66
Income Taxes 67 73
RecognitionandMeasurement 67
Presentation 68
Disclosure 69
PresentationandDisclosure Excerpts 70 73
ExpenseProvision. 70
TaxBenefit 71
OperatingLoss andTax Credit Carryforwards 72
DistributedandUndistributedForeignEarnings 73
Construction–Type andProduction–Type Contracts 74 76
RecognitionandMeasurement 74
PresentationandDisclosure Excerpts 75 76
Construction– andProduction–Type Contracts 75 76
DiscontinuedOperations 77 83
RecognitionandMeasurement 77 78
Presentation 79 81
PresentationandDisclosure Excerpts 82 83
Divestitures 82
SeparationofBusiness 83
Unusualor InfrequentlyOccurringItems 84 85
Presentation 84
PresentationandDisclosure Excerpt 85
Unusual Items 85
EarningsPer Share 86 89
Presentation 86
Disclosure 87
PresentationandDisclosure Excerpts 88 89
EarningsPer Share 88 89
4 Comprehensive Income 01 14
Comprehensive Income in Annual Filings 01 14
RecognitionandMeasurement 01
Presentation 02 05
PresentationandDisclosure Excerpts 06 14
CombinedStatementof Income andComprehensive Income. 06
Separate Statementof Comprehensive Income 07
Tax EffectDisclosure intheNotes 08
Tax EffectDisclosureonthe Faceof the Financial Statements 09
ForeignCurrency Translation 10
PensionandPostretirementPlans 11
Net Change inUnrealizedGains andLossesonInvestments 12
Gains andLossesonDerivatives 13
ReclassificationAdjustments 14
5 Stockholders Equity 01 46
Format of Stockholders Equity in Annual Filings 01 11
Presentation 01 04
Disclosure 05 06
PresentationandDisclosure Excerpts 07 11
InitialPublicOffering 07
CommonStock IssuedinanAcquisition 08
Conversionof Stock 09
TaxWithholdingsRelatedtoVestingof Share–BasedPayments 10
Warrants 11
CommonStock 12
Disclosure 12
PreferredStock 13 16
Presentation 13 14
Disclosure 15
PresentationandDisclosure Excerpt 16
PreferredStock 16
Dividends 17 19
Presentation 17
PresentationandDisclosure Excerpts 18 19
CashDividends 18
CashandStockDividends. 19
Stock Splits 20 23
RecognitionandMeasurement 20 21
PresentationandDisclosure Excerpts 22 23
Stock Split 22
Reverse Stock Split 23
Changes toRetainedEarnings 24 34
RecognitionandMeasurement 24
Presentation 25 28
PresentationandDisclosure Excerpts 29 34
AdoptionofAccountingStandard 29 30
Other Changes inRetainedEarnings ShareRepurchasePrograms 31
Other Changes inRetainedEarnings Spin–Off 32
Other Changes inRetainedEarnings Change inAccountingMethod 33
Other Changes inRetainedEarnings Dividends 34
Spinoffs 35 37
RecognitionandMeasurement 35 36
PresentationandDisclosure Excerpt 37
Spinoffs 37
Treasury Stock 38 40
Presentation 38 39
PresentationandDisclosure Excerpt 40
Treasury Stock 40
Other Componentsof Stockholders Equity. 41 46
Presentation 41 42
Disclosure 43 44
PresentationandDisclosure Excerpts 45 46
DeferredCompensation 45
Noncontrolling Interest 46
6 Statement of Cash Flows 01 35
General 01 13
Presentation 01 05
Disclosure 06 07
PresentationandDisclosure Excerpts 08 13
CashandCashEquivalents 08
Classificationof CertainCashReceipts andCashPayments 09
NewAccountingStandard RestrictedCash 10
Interest andIncome TaxPayments 11 12
NoncashActivities 13
CashFlows FromOperatingActivities 14 23
Presentation 14 16
PresentationandDisclosure Excerpts 17 23
DirectMethod 17
Indirect/Reconciliation Method 18
Adjustments toReconcileNet Income RestructuringCharges 19
Adjustments toReconcileNet Income Share–BasedCompensation 20
Adjustments toReconcileNet Income Impairment Charges 21
Adjustments toReconcileNet Income PensionSettlement Charges 22
Adjustments toReconcileNet Income RevaluationGain 23
CashFlows FromInvestingActivities 24 29
Presentation 24
PresentationandDisclosure Excerpts 25 29
Divestitures 25
Acquisitions 26
Escrow 27
FinanceReceivables 28
Purchasesof Investments. 29
CashFlows FromFinancingActivities 30 35
Presentation 30
PresentationandDisclosure Excerpts 31 35
IssuanceofDebt 31
Issuance of Noncontrolling Interests 32
EarlyRetirementofDebt 33
Paymentof Contingent Consideration 34
Acquisition of Noncontrolling Interests 35
7 Independent Auditors Report 01 72
PresentationinAnnualReport 01 03
Presentation 01 03
Auditors Reports 04 22
Presentation 04 19
Nonissuers 04 15
Issuers 16 19
PresentationandDisclosure Excerpts 20 22
PricewaterhouseCoopers LLPAuditor sReport 20
StatementsofOperations andComprehensive Income 21
Statementsof Shareholders Equity 22
Reference totheReportofOtherAuditors 23 30
Presentation 23 29
Nonissuers 23 27
Issuers 28 29
PresentationandDisclosure Excerpt 30
Reference toOtherAuditors 30
Uncertainties 31 32
Presentation 31 32
Nonissuers 31
Issuers 32
Lackof Consistency 33 43
Presentation 33 39
Nonissuers 33 34
Issuers 35 39
PresentationandDisclosure Excerpts 40 43
Inventory 40
Deferred Tax Assets and Liabilities 41 42
PensionandPostretirementBenefits 43
Emphasisof aMatter 44 47
Presentation 44 46
Nonissuers 44 45
Issuers 46
PresentationandDisclosure Excerpt 47
Emphasisof aMatter 47
Departures FromUnmodified(Unqualified)Opinions 48 50
Presentation 48 50
Nonissuers 48
Issuers 49 50
ReportsonComparative Financial Statements 51 53
Presentation 51 52
Nonissuers 51
Issuers 52
PresentationandDisclosure Excerpt 53
Change inAuditors 53
Opinion Expressed on Supplementary Financial Information 54 56
Presentation 54
PresentationandDisclosure Excerpts 55 56
Supplementary Financial Information 55 56
DatingofReport 57 60
Presentation 57 59
Nonissuers 57 58
Issuers 59
PresentationandDisclosure Excerpt 60
DatingofReport 60
Auditors ReportsonInternal ControlOver FinancialReporting 61 68
Presentation 61 63
PresentationandDisclosure Excerpts 64 68
SeparateReportonInternal Control 64
CombinedReportonFinancial Statements andInternal Control 65
ReportonInternal ControlWithSpecific Items Excluded 66
ReportonInternal ControlWithIneffective Internal Controls 67 68
GeneralManagement andSpecial–Purpose CommitteeReports 69 72
Presentation 69
PresentationandDisclosure Excerpts 70 72
ReportofManagement 70
Management sReportonInternal ControlOver FinancialReporting 71
Reportof theAudit andFinance Committee 72
Appendix/Indexes 741 771
Appendixof 350 Entities 741
Appendix of Survey Entity Industries 747
Index of Authoritative Accounting & AuditingGuidance 753
Subject Index 757
