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Free reference guide: US GAAP Reference
About US GAAP Reference
This US GAAP Reference is a searchable quick-reference guide for the FASB Accounting Standards Codification. It covers 27 major ASC topics with detailed journal entries and practical examples, including ASC 606 revenue recognition (5-step model, variable consideration), ASC 842 leases (lessee and lessor, ROU assets, short-term exemptions), ASC 326 CECL credit losses, ASC 815 derivatives and hedge accounting, and ASC 820 fair value hierarchy.
The reference spans seven categories: Revenue/Leases, Financial Instruments (CECL, derivatives, fair value), Assets/Depreciation (goodwill impairment, long-lived asset testing), Financial Statements (cash flow, comprehensive income, EPS), Accounting Principles (matching, conservatism, materiality, accrual basis), Tax/Other (deferred taxes, contingencies, accounting changes, subsequent events, debt vs equity), and Special Topics (business combinations, consolidation, segment reporting, stock compensation).
Designed for CPA exam candidates, audit professionals, financial controllers, accounting students, and corporate finance teams, this guide provides instant lookup of ASC topics with complete journal entry examples showing debits, credits, and computational formulas.
Key Features
- ASC 606 revenue recognition reference with 5-step model walkthrough and variable consideration constraint
- ASC 842 lessee and lessor lease accounting with operating vs finance lease journal entries and short-term exemption
- ASC 326 CECL expected credit loss model covering DCF, loss rate, vintage analysis, and probability-weighted methods
- ASC 815 derivative and hedge accounting guide for fair value, cash flow, and net investment hedges
- ASC 740 deferred tax calculation with DTA/DTL determination and valuation allowance assessment
- ASC 350/360 impairment testing procedures for goodwill (qualitative and quantitative) and long-lived assets
- Financial statement preparation guide covering cash flow statement (indirect method), OCI components, and basic/diluted EPS
- Special topics reference for ASC 805 business combinations, ASC 810 consolidation (VIE model), ASC 280 segments, and ASC 718 stock compensation
Frequently Asked Questions
What ASC topics does this US GAAP reference cover?
This reference covers 27 major ASC topics across seven categories: ASC 606 revenue recognition and variable consideration, ASC 842 leases (lessee, lessor, short-term exemption), ASC 820 fair value hierarchy, ASC 326 CECL, ASC 815 derivatives, ASC 350 goodwill impairment, ASC 360 long-lived assets, ASC 740 income taxes, ASC 450 contingencies, ASC 230 cash flow, ASC 220 comprehensive income, ASC 260 EPS, accounting principles (matching, conservatism, materiality, accrual basis), ASC 805 business combinations, ASC 810 consolidation, ASC 280 segments, ASC 718 stock compensation, ASC 250 accounting changes, ASC 855 subsequent events, and ASC 470 debt vs equity.
How does the ASC 606 revenue recognition section work?
The ASC 606 section covers the complete 5-step model: identifying the contract, identifying performance obligations, determining the transaction price, allocating the price to obligations, and recognizing revenue when control transfers. A separate entry covers variable consideration estimation using expected value and most likely amount methods, with the highly probable constraint for revenue reversal.
Does this reference include lease accounting journal entries?
Yes, ASC 842 entries cover both lessee and lessor perspectives. For lessees, operating and finance lease journal entries show ROU asset and lease liability recognition, ongoing expense patterns, and the short-term exemption for 12-month leases. For lessors, classification criteria and sales-type vs operating lease accounting are detailed with full debit/credit entries.
How is the CECL credit loss model explained?
The ASC 326 entry explains the shift from incurred loss to expected loss models, covering four measurement methods: discounted cash flow, loss rate method, vintage analysis, and probability-weighted scenario analysis. Journal entries show provision recording and actual write-off treatment.
What impairment testing guidance is included?
ASC 350 covers goodwill impairment testing with the optional qualitative assessment (Step 0), followed by comparing reporting unit fair value to carrying amount. ASC 360 covers long-lived asset impairment with the recoverability test using undiscounted cash flows, and three depreciation methods (straight-line, double-declining, units-of-production).
Does the reference cover deferred tax calculations?
Yes, ASC 740 explains temporary differences creating deferred tax assets (deductible differences like warranty accruals) and deferred tax liabilities (taxable differences like accelerated depreciation). It includes valuation allowance assessment when DTA realization is less than 50% probable, with journal entries and effective tax rate calculation.
What financial statement topics are included?
Three financial statement topics are covered: ASC 230 cash flow statement preparation using the indirect method with operating/investing/financing activity classification, ASC 220 other comprehensive income components (CTA, pension, hedging, AFS securities) with one-statement and two-statement presentation options, and ASC 260 basic and diluted EPS calculation including treasury stock method for options and if-converted method for convertible bonds.
Is this reference suitable for CPA exam preparation?
Yes, this reference is designed as a practical quick-reference for CPA candidates and accounting professionals. Each entry provides the accounting standard topic, key rules, complete journal entries with debits and credits, and computational examples. It covers the major FAR (Financial Accounting and Reporting) topics tested on the CPA exam.