by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Financial Instruments & Reporting
⚡ TL;DRFinancial instrument classification under US GAAP spans several topics: ASC 320 for debt securities (trading, available-for-sale, held-to-maturity), ASC 321 for equity investments (generally fair value through net income), and ASC 825 for the fair value option....
by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Financial Instruments & Reporting
⚡ TL;DRASC 280 governs segment reporting under US GAAP using the management approach: segments are reported the way management organises the business internally, based on the information the chief operating decision maker uses. Recent updates expanded segment expense...
by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Financial Instruments & Reporting
⚡ TL;DRASC 230 governs the statement of cash flows under US GAAP, classifying cash flows into operating, investing, and financing activities. Operating cash flows may be presented using the direct or indirect method, with the indirect method dominant in practice....
by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Financial Instruments & Reporting
⚡ TL;DRASC 820 defines fair value under US GAAP and sets a framework for measuring it: an exit price in an orderly transaction between market participants. It establishes a three-level hierarchy based on the observability of inputs and requires extensive disclosure....
by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Financial Instruments & Reporting
⚡ TL;DRASC 326 introduced the current expected credit loss (CECL) model under US GAAP. Unlike the old incurred-loss approach, CECL requires recognising lifetime expected credit losses on financial assets at initial recognition. It differs from IFRS 9’s...
