Generally Accepted Accounting Principles
in the United States

U.S. GAAP Codification Accounting Topics

Omnibus Opinion
(APB Opinion No. 10)

Principles of AccountingU.S. GAAP Financial Reporting Guide
Accounting by TopicAccounting Terms Dictionary

APB Opinion No. 10

Accounting Principles Board (APB) Opinion No. 10
        a.  Omnibus Opinion
        b.  Issued in December 1966
        c.  APB Opinion No. 10 replaces ARB No. 43, Chapter 3B

APB Opinion No. 10 addresses 7 topics:

        1.  Consolidated financial statements (Amendment to ARB No. 51)
                 --> deleted by APB Opinion No. 18.

        2.  Pooling of interests - Restatement of Financial Statement
                 --> deleted by APB Opinion No. 16.

        3.  Tax allocation accounts - Discounting

                 Deferred taxes (Inter-period tax allocations)
                 --> should NOT be reported
                       on a discounted basis.

        4.  Offsetting securities against taxes payable

                 Cash and other assets
                 --> should not be offset against tax liability.

                 Securities issued by government
                 --> should not be deducted from taxes payable
                       on the balance sheet.

                 Only exception
                 --> government issued securities
                       specifically designated as being acceptable
                       for the payment of taxes of those governments.

        5.  Convertible debt and debt issued with stock warrants
                 --> amended by APB Opinion No. 12.
                 --> deleted by APB Opinion No. 14.

        6.  Liquidation preference of preferred stock
                 --> deleted by SFAS No. 129.

        7.  Installment method of accounting

                 Revenues are ordinarily recognized
                 --> when a transaction is completed
                 --> with appropriate provision for uncollectible accounts.

                 Installment method of recognizing revenue
                 --> is not acceptable, with the following exception.

                 When the following conditions are met,
                 --> either installment method
                 --> or cost recovery method may be used.
                 --> receivables are collectible over an extended period of time
                 --> no reasonable basis for estimating the degree of collectibility

                 Cost Recovery Method
                 --> same amounts of revenue and expense are recognized
                 --> as collections are made
                 --> until all costs have been recovered.

                 --> recognition of profit is postponed until all costs are recovered. 
Overview of Revenue Recognition Principle

U.S. GAAP Codification
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

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