The Ultimate Accountants' Reference: Including GAAP, IRS and SEC Regulations, Leases, and More, Third Edition

The Ultimate Accountants\' Reference Including GAAP, IRS & SEC Regulations, Leases, and More, Third Edition......Page 5
CONTENTS......Page 7
ABOUT THE AUTHOR......Page 27
PREFACE......Page 29
PART ONE: OVERVIEW OF ACCOUNTING AND ITS ROLE IN THE ORGANIZATION......Page 31
CHAPTER 1: INTRODUCTION......Page 33
2.1 TASKS OF THE ACCOUNTING FUNCTION......Page 37
2.2 ROLE OF THE ACCOUNTING FUNCTION......Page 38
2.3 IMPACT OF ETHICS ON THE ACCOUNTING ROLE......Page 40
2.4 ACCOUNTING JOB DESCRIPTIONS......Page 42
2.5 SUMMARY......Page 46
PART TWO: ACCOUNTING RULES AND REGULATIONS......Page 47
3.2 THE COMMITTEE ON ACCOUNTING PROCEDURE......Page 49
3.5 THE FINANCIAL ACCOUNTING STANDARDS BOARD......Page 50
3.7 THE GOVERNMENT ACCOUNTING STANDARDS BOARD......Page 52
3.9 THE INTERNATIONAL ACCOUNTING STANDARDS BOARD......Page 53
3.11 SUMMARY......Page 54
4.2 OVERVIEW OF THE SEC......Page 56
4.3 ORGANIZATION OF THE SEC......Page 57
4.4 EDGAR......Page 61
4.6 THE SECURITIES EXCHANGE ACT OF 1934......Page 62
4.7 THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935......Page 63
4.9 THE INVESTMENT COMPANY ACT OF 1940......Page 64
4.11 REGULATION FD......Page 65
4.13 REGULATION S-K......Page 66
4.14 REGULATION S-T......Page 67
4.15 REGULATION S-X (REQUIREMENTS FOR FINANCIAL STATEMENT REPORTING)......Page 68
4.16 STAFF ACCOUNTING BULLETINS......Page 74
4.17 STAFF ACCOUNTING BULLETIN 99: MATERIALITY......Page 76
4.19 SUMMARY......Page 77
5.2 ETHICS......Page 78
5.3 EMPLOYMENT ELIGIBILITY......Page 80
5.4 GARNISHMENTS......Page 81
5.5 HEALTH INSURANCE......Page 82
5.6 PENSIONS......Page 83
5.7 TAXES......Page 84
5.8 WAGES AND OVERTIME......Page 86
5.9 OTHER LAWS IMPACTING ACCOUNTING......Page 88
5.10 SUMMARY......Page 89
PART THREE: ACCOUNTING REPORTS......Page 91
6.2 USES OF THE BALANCE SHEET AND STATEMENT OF STOCKHOLDERS’ EQUITY......Page 93
6.3 THE BALANCE SHEET FORMAT......Page 94
6.4 ASSET DEFINITIONS......Page 96
6.5 LIABILITY DEFINITIONS......Page 97
6.6 STOCKHOLDERS’ EQUITY DEFINITIONS......Page 98
6.8 ACCOUNTING TREATMENT OF OFFSETS TO ASSETS AND LIABILITIES......Page 99
6.9 CRITIQUE OF THE BALANCE SHEET......Page 100
6.10 SUMMARY......Page 102
7.2 FORMAT OF THE INCOME STATEMENT......Page 103
7.3 EXPENSES LISTED IN THE COST OF GOODS SOLD......Page 105
7.4 REPORTING EARNINGS PER SHARE......Page 106
7.6 TREATMENT OF ACCOUNTING CHANGES......Page 107
7.8 TREATMENT OF EXTRAORDINARY ITEMS......Page 108
7.10 TREATMENT OF PRIOR PERIOD ADJUSTMENTS......Page 109
7.11 SUMMARY......Page 110
8.1 INTRODUCTION......Page 111
8.4 FINANCING ACTIVITIES......Page 112
8.5 THE FORMAT OF THE STATEMENT OF CASH FLOWS......Page 113
8.9 SUMMARY......Page 114
CHAPTER 9: FOOTNOTES......Page 116
9.1 INTRODUCTION......Page 117
9.4 DISCLOSURE OF ASSET IMPAIRMENTS......Page 118
9.7 DISCLOSURE OF BILL AND HOLD TRANSACTIONS......Page 119
9.10 DISCLOSURE OF CAPITAL STRUCTURE......Page 120
9.13 DISCLOSURE OF CHANGE IN REPORTED METHOD OF INVESTMENT......Page 121
9.17 DISCLOSURE OF COMMITMENTS......Page 122
9.20 DISCLOSURE OF CONTINGENT ASSET PURCHASE OBLIGATION......Page 123
9.22 DISCLOSURE OF CONTINUED EXISTENCE DOUBTS......Page 124
9.25 DISCLOSURE OF DERIVATIVE USE OBJECTIVES......Page 125
9.26 DISCLOSURE OF DISCONTINUED OPERATIONS......Page 126
9.29 DISCLOSURE OF EMPLOYEE STOCK OWNERSHIP PLAN......Page 127
9.32 DISCLOSURE OF GAIN CONTINGENCIES......Page 128
9.35 DISCLOSURE OF GOODWILL......Page 129
9.38 DISCLOSURE OF INDUSTRY RISK......Page 130
9.42 DISCLOSURE OF INVESTMENT RESTRICTIONS......Page 131
9.43 DISCLOSURE OF INVESTMENTS......Page 132
9.45 DISCLOSURE OF LEASES BY LESSEES......Page 133
9.47 DISCLOSURE OF LITIGATION......Page 134
9.50 DISCLOSURE OF LOAN GUARANTEES......Page 135
9.53 DISCLOSURE OF NONSTANDARD REPORTED METHOD OF INVESTMENT......Page 136
9.56 DISCLOSURE OF PRIOR PERIOD ADJUSTMENTS......Page 137
9.58 DISCLOSURE OF REDUCTION IN EQUITY METHOD INVESTMENT......Page 138
9.61 DISCLOSURE OF REVENUE RECOGNITION POLICY......Page 139
9.63 DISCLOSURE OF THE SALE OF HELD-TO-MATURITY INVESTMENTS......Page 140
9.67 DISCLOSURE OF SHIFTS BETWEEN SECURITIES ACCOUNTS......Page 141
9.70 DISCLOSURE OF STOCK OPTIONS......Page 142
9.73 DISCLOSURE OF STOCK SPLITS......Page 144
9.76 DISCLOSURE OF TAXATION DISPUTES......Page 145
9.79 DISCLOSURE OF WARRANTY EXPENSE ALLOWANCE......Page 146
9.81 SUMMARY......Page 147
10.2 STATUS REPORTS......Page 148
10.3 MARGIN REPORTS......Page 151
10.4 CASH REPORTS......Page 155
10.6 PAYROLL REPORTS......Page 156
10.7 GRAPHICAL REPORT LAYOUTS......Page 159
10.8 SUMMARY......Page 162
11.2 THE CURRENT RATE TRANSLATION METHOD......Page 163
11.3 EXAMPLE OF THE CURRENT RATE METHOD......Page 164
11.4 THE REMEASUREMENT METHOD......Page 165
11.5 EXAMPLE OF THE REMEASUREMENT METHOD......Page 166
11.7 TRANSLATION OF FOREIGN CURRENCY TRANSACTIONS......Page 167
11.8 EXCHANGE RATES USED FOR CALCULATIONS......Page 169
11.10 SUMMARY......Page 170
PART FOUR: ELEMENTS OF THE BALANCE SHEET AND INCOME STATEMENT......Page 171
12.2 CASH......Page 173
12.4 ACCOUNTING FOR MARKETABLE EQUITY SECURITIES......Page 174
12.5 TRANSFERS BETWEEN AVAILABLE-FOR-SALE AND TRADING INVESTMENTS......Page 176
12.6 ACCOUNTING FOR INVESTMENTS IN DEBT SECURITIES......Page 177
12.8 ACCOUNTING FOR GAINS OR LOSSES ON SECURITIES......Page 178
12.9 RECOGNITION OF DEFERRED TAX EFFECTS ON CHANGES IN INVESTMENT VALUATIONS......Page 179
12.10 THE EQUITY METHOD OF INVESTMENT ACCOUNTING......Page 180
12.11 SUMMARY......Page 182
13.1 INTRODUCTION......Page 183
13.3 THE INVENTORY TRACKING SYSTEM......Page 184
13.4 THE PHYSICAL INVENTORY PROCEDURE......Page 187
13.6 INVENTORY PURCHASING......Page 189
13.8 INVENTORY STORAGE......Page 190
13.9 PRODUCTION ISSUES IMPACTING INVENTORY......Page 191
13.11 PRODUCT DESIGN......Page 192
13.14 GOODS IN TRANSIT......Page 193
13.15 ACCOUNTING FOR INVENTORIES......Page 194
13.17 LOWER OF COST OR MARKET RULE......Page 196
13.18 SPECIFIC IDENTIFICATION INVENTORY VALUATION METHOD......Page 197
13.19 FIRST-IN, FIRST-OUT (FIFO) INVENTORY VALUATION METHOD......Page 198
13.20 LAST-IN, FIRST-OUT (LIFO) INVENTORY VALUATION METHOD......Page 200
13.21 DOLLAR VALUE LIFO INVENTORY VALUATION METHOD......Page 201
13.22 LINK CHAIN METHOD......Page 204
13.23 WEIGHTED-AVERAGE INVENTORY VALUATION METHOD......Page 205
13.24 TYPE OF INVENTORY VALUATION SYSTEM TO USE......Page 206
13.25 SUMMARY......Page 209
14.2 DEFINITION OF ACCOUNTS RECEIVABLE......Page 210
14.5 COLLATERAL, ASSIGNMENTS, AND FACTORING......Page 211
14.6 SALES RETURNS......Page 212
14.8 REPORTING OF LONG-TERM RECEIVABLES......Page 213
14.9 TREATMENT OF BAD DEBTS......Page 214
14.10 RECEIVABLES OWNERSHIP DECISION......Page 215
14.11 SUMMARY......Page 216
15.2 THE CAPITALIZATION LIMIT......Page 217
15.3 FIXED ASSET PURCHASES......Page 218
15.4 FIXED ASSET IMPROVEMENTS......Page 222
15.6 FIXED ASSET DISPOSITIONS......Page 223
15.9 CONSTRUCTION IN PROGRESS......Page 225
15.11 ACCOUNTING FOR LEASEHOLD IMPROVEMENTS......Page 226
15.13 DEPRECIATION ISSUES......Page 227
15.15 DOUBLE DECLINING BALANCE DEPRECIATION......Page 228
15.17 UNITS OF PRODUCTION DEPRECIATION METHOD......Page 229
15.18 ASSET IMPAIRMENT......Page 230
15.19 INTANGIBLE ASSETS......Page 231
15.21 SUMMARY......Page 233
16.2 THE ACCOUNTS PAYABLE TRANSACTION FLOW......Page 234
16.5 CURRENT LIABILITIES—ADVANCES......Page 236
16.9 CURRENT LIABILITIES—DEBT......Page 237
16.11 CURRENT LIABILITIES—PROPERTY TAXES......Page 238
16.14 CURRENT LIABILITIES—WARRANTY CLAIMS......Page 239
16.18 CONTINGENCIES—GUARANTEED MINIMUM OPTION PRICE......Page 240
16.19 SUMMARY......Page 241
17.2 OVERVIEW OF BONDS......Page 242
17.3 DEBT CLASSIFICATION......Page 243
17.4 INTEREST RISK MANAGEMENT......Page 244
17.5 BONDS SOLD AT A DISCOUNT OR PREMIUM TO THEIR FACE VALUE......Page 253
17.6 EFFECTIVE INTEREST METHOD......Page 255
17.8 DEBT ISSUANCE COSTS......Page 256
17.9 NOTES ISSUED WITH ATTACHED RIGHTS......Page 257
17.11 EXTINGUISHMENT OF DEBT......Page 258
17.13 CONVERTIBLE DEBT......Page 260
17.14 CONVERTIBLE DEBT ISSUED IN THE MONEY......Page 261
17.17 DEBT ISSUED WITH STOCK WARRANTS......Page 262
17.18 ACCOUNTING FOR INTEREST RISK MANAGEMENT ACTIVITIES......Page 263
17.20 SUMMARY......Page 268
18.2 LEGAL CAPITAL AND CAPITAL STOCK......Page 269
18.3 CONVERTIBLE PREFERRED STOCK......Page 270
18.4 STOCK SPLITS......Page 271
18.6 RETAINED EARNINGS......Page 272
18.7 STOCK WARRANTS......Page 273
18.8 DIVIDENDS......Page 274
18.9 TREASURY STOCK......Page 275
18.11 EMPLOYEE STOCK OWNERSHIP PLANS......Page 278
18.12 SUMMARY......Page 280
19.2 OPTION ACCOUNTING......Page 281
19.3 COMPENSATION EXPENSE RECOGNITION......Page 285
19.4 OPTIONS—MEASUREMENT USING SFAS 123 REQUIREMENTS......Page 286
19.5 STOCK OPTION RECORDKEEPING......Page 287
19.6 SUMMARY......Page 288
20.2 REVENUE RECOGNITION CONCEPTS......Page 289
20.3 REVENUE RECOGNITION SCENARIOS......Page 290
20.4 BILL AND HOLD REVENUE TRANSACTIONS......Page 291
20.5 RECORDING REVENUES AT GROSS OR NET......Page 292
20.6 REDUCING REVENUE BY CASH PAID TO CUSTOMERS......Page 293
20.7 LONG-TERM CONSTRUCTION CONTRACTS......Page 294
20.8 SERVICE REVENUES......Page 296
20.9 RECOGNITION OF LOSSES ON SERVICE CONTRACTS......Page 297
20.12 SALES WHEN COLLECTION IS UNCERTAIN......Page 299
20.14 REVENUE RECOGNITION WHEN RIGHT OF RETURN EXISTS......Page 301
20.16 SUMMARY......Page 302
21.2 DEFINITION OF RESEARCH AND DEVELOPMENT......Page 303
21.3 ACCOUNTING FOR IN-HOUSE R&D COSTS......Page 304
21.6 R&D COSTS IN THE SOFTWARE INDUSTRY......Page 305
21.7 SUMMARY......Page 306
22.2 ACCOUNTING FOR LEASES—LESSEE......Page 307
22.5 ACCOUNTING FOR SALES-TYPE LEASES—LESSOR......Page 310
22.6 ACCOUNTING FOR DIRECT FINANCING LEASES—LESSOR......Page 312
22.8 LEASE EXTENSIONS......Page 314
22.10 SALE-LEASEBACK TRANSACTIONS......Page 315
22.11 SUMMARY......Page 316
23.2 EARNINGS PER SHARE PRESENTATION REQUIREMENTS......Page 317
23.3 EARNINGS PER SHARE FOR A SIMPLE CAPITAL STRUCTURE......Page 318
23.4 DILUTED EARNINGS PER SHARE......Page 319
23.6 IF-CONVERTED METHOD......Page 320
23.8 SUMMARY......Page 321
24.2 SEGMENT REPORTING REQUIREMENTS......Page 322
24.3 TESTING FOR REPORTABLE SEGMENTS......Page 323
24.4 SEGMENT AGGREGATION......Page 324
24.6 SEGMENT-RELATED DISCLOSURES......Page 325
24.7 SUMMARY......Page 326
25.3 INTERIM REPORTING GUIDELINES......Page 327
25.4 INTERIM-PERIOD DISCLOSURES......Page 330
25.5 SUMMARY......Page 331
26.2 DEFINITIONS......Page 332
26.4 CHANGES IN ACCOUNTING ESTIMATE......Page 333
26.7 DISCLOSURE OF ACCOUNTING CHANGES AND CORRECTION OF ERRORS......Page 334
26.8 SUMMARY......Page 335
PART FIVE: ACCOUNTING MANAGEMENT......Page 337
27.2 BEST PRACTICES......Page 339
27.3 BEST PRACTICES PROCESS FLOWCHARTS......Page 359
27.4 SUMMARY......Page 363
28.2 THE SYSTEM OF INTERLOCKING BUDGETS......Page 364
28.3 A SAMPLE BUDGET......Page 372
28.4 THE FLEX BUDGET......Page 387
28.5 CAPITAL BUDGETING—TRADITIONAL METHOD......Page 388
28.6 THE BUDGETING PROCESS......Page 394
28.7 BUDGETARY CONTROL SYSTEMS......Page 399
28.8 SUMMARY......Page 401
29.1 INTRODUCTION......Page 402
29.2 THE CURRENT STATE OF THE FINANCIAL STATEMENTS......Page 403
29.4 GENERAL IMPROVEMENTS FOR CLOSING THE BOOKS......Page 405
29.5 CLOSING ACTIVITIES PRIOR TO PERIOD-END......Page 406
29.6 CLOSING ACTIVITIES SUBSEQUENT TO PERIOD-END......Page 408
29.7 CLOSING ACTIVITIES SUBSEQUENT TO STATEMENT ISSUANCE......Page 409
29.8 THE CLOSING CHECKLIST......Page 410
29.10 THE INSTANTANEOUS CLOSE......Page 411
29.11 CLOSING THE BOOKS OF A PUBLIC COMPANY......Page 415
29.12 SUMMARY......Page 420
30.2 THE NEED FOR CONTROL SYSTEMS......Page 422
30.3 TYPES OF FRAUD......Page 423
30.4 ORDER ENTRY AND CREDIT CONTROLS......Page 425
30.5 INVENTORY CONTROLS......Page 428
30.6 ACCOUNTS PAYABLE CONTROLS......Page 432
30.8 CASH RECEIPTS CONTROLS......Page 435
30.9 PAYROLL CONTROLS......Page 439
30.10 CLOSING CONTROLS......Page 443
30.11 KEY CONTROLS......Page 447
30.12 WHEN TO ELIMINATE CONTROLS......Page 471
30.13 SUMMARY......Page 472
31.2 THE PURPOSE OF COST ACCOUNTING INFORMATION......Page 473
31.3 INPUT: DATA COLLECTION SYSTEMS......Page 474
31.4 PROCESSING: DATA SUMMARIZATION SYSTEMS......Page 477
31.5 PROCESSING: JOB COSTING......Page 480
31.6 PROCESSING: PROCESS COSTING......Page 484
31.7 PROCESSING: STANDARD COSTING......Page 487
31.8 PROCESSING: DIRECT COSTING......Page 490
31.9 PROCESSING: THROUGHPUT COSTING......Page 492
31.10 PROCESSING: ACTIVITY-BASED COSTING......Page 495
31.11 PROCESSING: TARGET COSTING......Page 497
31.12 PROCESSING: BY-PRODUCT AND JOINT PRODUCT COSTING......Page 499
31.13 OUTPUTS: COST VARIANCES......Page 504
31.14 SUMMARY......Page 507
32.2 THE COST OF CAPITAL......Page 508
32.3 BREAKEVEN ANALYSIS......Page 512
32.4 ELIMINATING UNPROFITABLE PRODUCTS......Page 514
32.5 RISK ANALYSIS......Page 517
32.6 BUSINESS CYCLE FORECASTING......Page 518
32.7 SUMMARY......Page 519
33.2 RECORDKEEPING COSTS......Page 520
33.3 RECORDKEEPING POLICIES AND PROCEDURES......Page 521
33.4 REQUIRED TAX RECORDS......Page 525
33.5 SUMMARY......Page 528
PART SIX: FINANCIAL MANAGEMENT......Page 529
34.2 TYPES OF CREDIT......Page 531
34.3 SELLING TERMS......Page 533
34.4 CREDIT EXAMINATION......Page 534
34.5 COLLECTION TECHNIQUES......Page 537
34.6 SUMMARY......Page 539
35.2 MANAGEMENT OF FINANCING ISSUES......Page 541
35.3 BANK RELATIONS......Page 542
35.4 ACCOUNTS PAYABLE PAYMENT DELAY......Page 543
35.6 CREDIT CARDS......Page 544
35.8 EQUITY......Page 545
35.10 FIELD WAREHOUSE FINANCING......Page 546
35.12 INVENTORY REDUCTION......Page 547
35.14 LEASE, SYNTHETIC......Page 548
35.16 LOAN, ASSET-BASED......Page 549
35.17 LOAN, BOND......Page 550
35.20 LOAN, LONG-TERM......Page 551
35.22 PRIVATE INVESTMENT IN PUBLIC EQUITY......Page 552
35.25 SUMMARY......Page 553
36.2 THE CASH FORECASTING MODEL......Page 554
36.4 CASH FORECASTING AUTOMATION......Page 558
36.5 CASH MANAGEMENT CONTROLS......Page 560
36.6 THE BENEFITS OF CASH CONCENTRATION......Page 563
36.7 CASH CONCENTRATION STRATEGIES......Page 564
36.8 POOLING CONCEPTS......Page 565
36.9 PHYSICAL SWEEPING......Page 566
36.10 NOTIONAL POOLING......Page 568
36.12 INVESTMENT OPTIONS......Page 569
36.13 INVESTMENT STRATEGIES......Page 572
36.14 RISK REDUCTION STRATEGIES......Page 574
36.15 SUMMARY......Page 575
37.2 FOREIGN EXCHANGE QUOTE TERMINOLOGY......Page 576
37.4 DATA COLLECTION FOR FOREIGN EXCHANGE RISK MANAGEMENT......Page 577
37.5 FOREIGN EXCHANGE HEDGING STRATEGIES......Page 578
37.6 HEDGE ACCOUNTING......Page 587
37.7 FOREIGN EXCHANGE HEDGE CONTROLS......Page 593
37.8 FOREIGN EXCHANGE HEDGE POLICIES......Page 594
37.10 SUMMARY......Page 596
38.2 RISK MANAGEMENT POLICIES......Page 597
38.3 MANAGER OF RISK MANAGEMENT......Page 598
38.4 RISK MANAGEMENT PROCEDURES......Page 599
38.5 TYPES OF INSURANCE COMPANIES......Page 602
38.6 CLAIMS ADMINISTRATION......Page 603
38.7 INSURANCE FILES......Page 604
38.8 ANNUAL RISK MANAGEMENT REPORT......Page 605
38.9 SUMMARY......Page 606
PART SEVEN: OTHER ACCOUNTING TOPICS......Page 607
39.2 EVALUATING ACQUISITION TARGETS......Page 609
39.3 VALUING AN ACQUISITION TARGET......Page 625
39.4 TYPES OF ACQUISITIONS......Page 638
39.5 THE PURCHASE METHOD......Page 646
39.7 THE EQUITY METHOD......Page 650
39.8 THE CONSOLIDATION METHOD......Page 652
39.10 LEVERAGED BUYOUTS......Page 653
39.12 SUMMARY......Page 654
40.2 REASONS TO GO PUBLIC......Page 655
40.3 REASONS NOT TO GO PUBLIC......Page 656
40.5 PREPARING FOR THE IPO......Page 658
40.6 FINDING AN UNDERWRITER......Page 660
40.7 REGISTERING FOR AND COMPLETING THE IPO......Page 663
40.8 ALTERNATIVES FOR SELLING SECURITIES......Page 665
40.9 LISTING ON AN EXCHANGE......Page 667
40.10 RESTRICTIONS ON STOCK IN A PUBLICLY TRADED COMPANY......Page 674
40.11 SUMMARY......Page 675
41.3 RULE 13E-3......Page 676
41.5 FILLING OUT SCHEDULE 13E-3......Page 677
41.7 SUMMARY......Page 680
42.2 APPLICABLE BANKRUPTCY LAWS......Page 681
42.3 PLAYERS IN THE BANKRUPTCY DRAMA......Page 682
42.5 THE BANKRUPTCY SEQUENCE OF EVENTS......Page 683
42.6 TAX LIABILITIES IN A BANKRUPTCY......Page 689
42.8 ALTERNATIVES TO BANKRUPTCY......Page 690
42.9 SUMMARY......Page 691
43.1 INTRODUCTION......Page 692
43.2 THE STRATEGY OF TAX PLANNING......Page 693
43.4 ALTERNATIVE MINIMUM TAX......Page 694
43.6 BONUSES AND AWARDS......Page 695
43.7 CASH METHOD OF ACCOUNTING......Page 696
43.9 CHANGE OF TAX YEAR......Page 697
43.12 DEFERRED COMPENSATION......Page 698
43.13 DEPRECIATION......Page 700
43.14 DISTRIBUTIONS......Page 703
43.16 FINANCIAL REPORTING OF TAX LIABILITIES......Page 704
43.18 GIFTS (BUSINESS)......Page 706
43.20 HYBRID METHODS OF ACCOUNTING......Page 707
43.22 INSTALLMENT SALES......Page 708
43.23 INVENTORY VALUATION......Page 709
43.24 LIFE INSURANCE......Page 711
43.26 LOSSES......Page 712
43.27 NEXUS......Page 713
43.29 PARTNERSHIP TAXATION......Page 714
43.30 PASSIVE ACTIVITY LOSSES......Page 716
43.32 RETIREMENT PLANS......Page 717
43.33 S CORPORATIONS......Page 722
43.34 SALES AND USE TAXES......Page 723
43.36 SOCIAL SECURITY TAX......Page 724
43.38 STOCK OPTIONS......Page 725
43.40 TAX YEAR......Page 727
43.41 TRANSFER PRICING......Page 730
43.42 UNEMPLOYMENT TAXES......Page 732
43.44 SUMMARY......Page 733
A.1 THREE-DIGIT ACCOUNT CODE STRUCTURE......Page 734
A.2 FIVE-DIGIT ACCOUNT CODE STRUCTURE......Page 736
A.3 SEVEN-DIGIT ACCOUNT CODE STRUCTURE......Page 737
APPENDIX B: JOURNAL ENTRIES......Page 740
B.1 ACQUISITIONS......Page 742
B.4 CURRENT LIABILITIES......Page 744
B.5 DEBT, CONVERTIBLE......Page 746
B.6 DEBT EXTINGUISHMENT......Page 748
B.7 DEBT ISSUED WITH STOCK WARRANTS......Page 749
B.8 DEBT SECURITY TRANSFERS AMONG PORTFOLIOS......Page 750
B.9 DIVIDENDS......Page 751
B.11 EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)......Page 753
B.12 EQUITY METHOD OF ACCOUNTING FOR INVESTMENTS......Page 754
B.13 EQUITY SECURITY TRANSFERS BETWEEN AVAILABLE-FOR-SALE AND TRADING PORTFOLIOS......Page 755
B.14 FIXED ASSETS......Page 756
B.15 FOREIGN CURRENCY......Page 758
B.16 INTANGIBLE ASSETS......Page 759
B.17 INVENTORY ADJUSTMENTS......Page 760
B.18 INVENTORY IN TRANSIT......Page 761
B.20 INVESTMENTS IN DEBT SECURITIES......Page 762
B.22 LEASES—LESSOR ACCOUNTING......Page 764
B.23 LONG-TERM CONSTRUCTION CONTRACTS......Page 766
B.24 MARKETABLE EQUITY SECURITIES......Page 767
B.25 NOTES AND BONDS......Page 768
B.26 OPTIONS......Page 770
B.27 PENSIONS......Page 771
B.28 RECEIVABLES......Page 772
B.30 REVENUE, INSTALLMENT......Page 774
B.31 REVENUE, SERVICE......Page 775
B.33 STOCK......Page 776
B.34 STOCK APPRECIATION RIGHTS (SAR)......Page 778
B.36 TAXES......Page 779
B.37 TREASURY STOCK......Page 780
B.38 WARRANTS......Page 782
C.2 COMPOUND INTEREST (FUTURE AMOUNT OF 1 AT COMPOUND INTEREST DUE IN N PERIODS)......Page 783
C.3 COMPOUND INTEREST (PRESENT VALUE OF 1 DUE IN N PERIODS)......Page 784
C.5 FUTURE AMOUNT OF ORDINARY ANNUITY OF 1 PER PERIOD......Page 789
APPENDIX D: RATIOS......Page 790
E.2 CORPORATE OVERVIEW......Page 797
E.3 ORGANIZATION AND GENERAL CORPORATE ISSUES......Page 798
E.4 CAPITALIZATION AND SIGNIFICANT SUBSIDIARIES......Page 799
E.7 EMPLOYEES......Page 800
E.10 LIABILITIES......Page 801
E.13 SOFTWARE DEVELOPMENT......Page 802
E.16 SALES......Page 803
E.17 OTHER......Page 804
INDEX......Page 805