U.S. GAAP, Generally Accepted Accounting Principles

Generally Accepted Accounting Principles
in the United States

U.S. GAAP-Codification

IFRS International Standards

Accounting Standards, ASC

Accounting for Contingencies

U.S. GAAP Codification, IFRS, IAS by Topic, Accounting Terms

Principles of Accounting, Intermediate Accounting, Advanced Accounting

Accounting Standards ASC, Accounting by Topic, Accounting Textbooks

SFAS No. 5

Statement of Financial Accounting Standards (SFAS) No. 5
        a. Accounting for Contingencies
        b. Issued in March 1975
        c. Deletes ARB No. 43, Chapter 6, "Contingency Reserves", June 1953
        d. Supersedes ARB No. 50, "Contingencies", October 1958

Accrual of Loss Contingencies
        a. Estimated loss from a loss contingency
                --> accrued by a charge to income
                --> if both of the following conditions are met

Conditions of Loss Contingencies Accrual
        a. A loss contingency is probable.
        b. Amount of loss can be reasonably estimated.

Likelihood of Loss Contingencies
        a. Probable --> likely to occur
        b. Reasonably possible --> more than remote but less than likely
        c. Remote --> chance of occurring is slight.

Examples of Loss Contingencies
        a. Collectibility of receivables
      b. Product warranties
      c. Risk of loss or damage of property
      d. Pending litigation

Gain Contingencies
        a. Gain contingencies
                --> are not reflected in the accounts
                --> adequate disclosure shall be made
                --> avoid misleading implications as to the likelihood of realization.

U.S. GAAP Codification

International Financial Reporting Standards (IFRS)

Accounting Topics

Inventory Valuation Methods

Depreciation Methods

Revenue Recognition Principle

Accrual Basis vs. Cash Basis Accounting

Basics of Journal Entries

Ratios for Financial Statement Analysis

Overview of Financial Statements