Accounting Principles Board (APB) Opinion No.
b. Issued in December 1967
No. 12 addresses 6 topics:
Classification and disclosure of allowances
should be deducted from the
Examples of allowances
Allowance for doubtful accounts receivable
Valuation allowance for investments
Disclosure of depreciable assets and depreciation
are required regarding depreciation:
Balances of major classes of depreciable assets
Description of depreciation method
Deferred compensation contracts
--> amended by SFAS No. 87 and
are required regarding capital changes:
Changes in the separate accounts
comprising stockholders' equity
Changes in the number of shares of equity securities.
Convertible debt and debt issued with stock warrants
APB Opinion No.
Amortization of debt discount and expense or premium
method of amortization of discount or
premium on debt
acceptable method (and theoretically sound).