Example 7.5: Marketing and Advertising ExpensesMarketing and advertising expenditures are expensed in the annual period in which the expenditure is incurred.
Example 7.6: Advertising Expenses and Promotional Costs
Cash Equivalents
Example 7.7: Cash Equivalents
Example 7.8: Cash Equivalents—No Cash Equivalents
Comprehensive Income
Example 7.9: Comprehensive Income (Loss)
Concentrations of Risk
Example 7.10: Concentration of Risk
Example 7.11: Concentration of Risk
Consolidation Policy
Example 7.12: Basis of Presentation and Basis of Consolidation: Combined Note
Example 7.13: Basis of Consolidation with Detail
Example 7.14: Basis of Consolidation, Including a VIE
Example 7.15: Noncontrolling Interest
Contingencies
Example 7.16: Contingencies
Derivatives
Example 7.17: Convertible Notes Payable and Derivative Instruments
Earnings Per Share
Example 7.18: Earnings (Loss) Per Share
Example 7.19: Loss per Common Share
Use of Estimates
Example 7.20: Use of Estimates and Assumptions
Financial Instruments
Example 7.21: Fair Value of Financial Instruments
Example 7.22: Derivative Financial Instruments
Foreign Currency Transactions
Example 7.23: Foreign Currency Transactions and Comprehensive Income
Income Taxes
Example 7.24: Taxation, Including Tax Cuts and Jobs Act Disclosure
Example 7.25: Taxation
Intangible Assets
Example 7.26: Intangible Assets, Net
Example 7.27: Goodwill
Example 7.28: Goodwill and Intangible Assets
Example 7.29: Software Development Costs
Inventories
Example 7.30: Inventories and Cost Method
Example 7.40: Inventories—Merchandise Inventories
Property and Equipment and Depreciation Methods
Example 7.41: Property and Equipment, Net, Straight‐Line Depreciation Method and Impairment Policy
Example 7.42: Property and Equipment, Net, Declining Balance Depreciation Method
Example 7.43: Long‐lived Assets—Impairment or Disposal
Nature of Operations
Example 7.44: Nature of Operations
Revenue
Example 7.45: Revenue Recognition under ASC 606 with Effects of Adoption of ASU 2014‐09
Example 7.46: Revenue Recognition under ASC 606, Including Policies Regarding Performance Obligations, Estimated Returns, Shipping Fees, and Gift Cards
Recent Accounting Pronouncements
Example 7.47: Recent Accounting Pronouncements
Example 7.48: Recent Accounting Pronouncements
Example 7.49: Recently Adopted Accounting Pronouncements
Example 7.50: Recently Issued Adopted Pronouncements
Risks and Uncertainties
Example 7.51: Risks and Uncertainties
Stock‐Based Compensation
Example 7.52: Stock‐Based Compensation
Example 7.53: Stock‐Based Compensation
AUTHORITATIVE LITERATURE
Subtopic
ASC 235, Notes to Financial Statements, contains one Subtopic:
ASC 235‐10, Overall, which addresses “the content and usefulness of the accounting policies judged by management to be most appropriate to fairly present the entity's financial statement.”
Scope
ASC 235 applies to all entities and has no scope exceptions.
Disclosure Techniques
When preparing disclosure notes, entities should consider the purpose of the disclosure—to provide users with information that assists them in assessing the entity's performance and cash flow. The notes should enhance the information presented on the face of the financial statements, provide clarity, and be organized in a logical manner. Entities should also word notes in plain English,
