Generally Accepted Accounting Principles
in the United States

U.S. GAAP Codification Accounting Topics

Omnibus Opinion
(APB Opinion No. 12)

Principles of AccountingU.S. GAAP Financial Reporting Guide
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APB Opinion No. 12

Accounting Principles Board (APB) Opinion No. 12
        a.  Omnibus Opinion
        b.  Issued in December 1967

APB Opinion No. 12 addresses 6 topics:

        1.  Classification and disclosure of allowances

             --> should be deducted from the related assets

             Examples of allowances
             a.  Allowance for doubtful accounts receivable
             b.  Valuation allowance for investments
             c.  Accumulated depreciation

        2.  Disclosure of depreciable assets and depreciation

             Following disclosures are required regarding depreciation:
             a.  Depreciation expense
             b.  Balances of major classes of depreciable assets
             c.  Accumulated depreciation
             d.  Description of depreciation method

        3.  Deferred compensation contracts
             --> amended by SFAS No. 87 and No. 106.

        4.  Capital changes

             Following disclosures are required regarding capital changes:
             a.  Changes in the separate accounts
                  --> comprising stockholders' equity
             b.  Changes in the number of shares of equity securities.

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

        6.  Amortization of debt discount and expense or premium

             Interest method of amortization of discount or premium on debt
             --> an acceptable method (and theoretically sound).

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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