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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
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
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comprising stockholders' equity
b.
Changes in the number of shares of equity securities.
5.
Convertible debt and debt issued with stock warrants
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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).
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