Introduction
- A Thumbnail History of Financial Accounting’s Descent into Madness
- An Economic Basis for An Honest Financial Accounting
- Appendix: The Myth of FASB “Due Process” and the Reality of Undue Influence
Section I – Overall
Financial Accounting versus Financial Reporting (Financial Accounting in Context)
- “Accounting”
- “Financial” Accounting
- Appendix: Reforming the Audit Function
“Honest” Financial Accounting
- General Characteristics of An Honest Financial Accounting
- Major Examples for which US GAAP Fails to be Honest
Recognition and Measurement
- Double-entry accounting
- Which financial assets and liabilities to recognize?
- Which non-financial assets and liabilities to recognize?
- The case of goodwill
- What attribute of assets and liabilities to measure?
- Taking into account the effects of inflation
Section II – Presentation
Balance sheet
- Balance sheet or “statement of financial position”?
- Owners’ equity
- Unit of Measure
- Cash
- Offsetting assets and liabilities
- General
- Consolidation and equity method
- Leases
- Repurchase agreements
- Derivative financial instruments
Income Statement
- “Accounting income” versus “income”
- Clean versus dirty surplus
- Recognized components of net income
- Revenue recognition
- Subtotals
Other financial statements and disclosures
- General disclosure framework
- Statement of cash flows
- Statement of changes in residual interests (including goodwill)
Section III – Special Topics
Foreign operations and foreign currencies
Loans, receivables and interest
Leasing
Taxes
Hedge Accounting
Section IV – Supplementary Materials
Status of the FASB ASC within AHFA
Illustrations of the Application of AHFA