Account Type: Statement of Financial Position

Cash and Cash Equivalents

Investments and Financial Instruments
Receivables
Inventory
Accrued Assets
Property, Plant and Equipment
Intangible Assets Excluding Goodwill
Goodwill
Payables
Accrued Liabilities
Debts
Liabilities Other than Debt
Owners, Partners, Stockholders Equity
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Account Type: Statement of Changes in Financial Position
Revenue
Expenses Classified By Function
Cost Of Sales
Selling, General and Administrative Expenses
Other Operating Expenses
Expenses Classified By Nature
Merchandise, Material, Supplies and Utilities
Employee Related Expenses
Services
Rent, Depreciation, Amortization and Depletion
Other Operating Expenses
Other Income and Expense
Gains and Losses
Taxes Other Than Income
Income Tax Expense (Benefit)
While it is standard practice to structure financial reports in a current / non-current (aka fixed or long-lived) format, this is not the optim
The main reason is that the ASC (http://asc.fasb.org/home&agreed=1) is not structured this way.
For example, it disaggregates assets into:
305 Cash and Cash Equivalents
310 Receivables
320 Investments—Debt and Equity Securities
321 Investments—Equity Securities
323 Investments—Equity Method and Joint Ventures
325 Investments—Other
326 Financial Instruments—Credit Losses
330 Inventory
340 Other Assets and Deferred Costs
350 Intangibles—Goodwill and Other
360 Property, Plant, and Equipment
Since each of these topics has its particular recognition and measurement requirements, using an asset class like fixed assets (which can co
The second reason the current/non-current structure is not good for accounts is that that many of items (as defined in US GAAP XBRL) can
Function versus Nature
From a reporting perspective, GAAP requires expenses to be disaggregated by function into cost of sales (revenues), selling expenses, gene
From an accounting perspective, this kind of classification is not practical.
Instead, a nature of expense classification scheme is much more workable.
For example, take payroll.
It is preferable to have a single account for “payroll” where all payroll costs are recognized during the period.
At the end of the period, this account is disaggregated (i.e. by profit or cost center) into Cost of sales: Payroll, General Expenses: Payroll, A
The same principal is then used for rent, depreciation, services, etc.
Account No. Account Account #
100000 Assets 1
100001 Cash and Cash Equivalents 1.1
110001 Cash In Bank and On Hand 1.1.1
110002 Cash Equivalents 1.1.2
110003 Restricted Cash and Cash Equivalents 1.1.3
110004 Other Cash Items 1.1.4
100002 Investments and Financial Instruments 1.2
120001 Investments 1.2.1
120002 Related Party Investments 1.2.2
120003 Derivatives and Securities 1.2.3
120004 Other Investments 1.2.4
100003 Receivables 1.3
130001 Trade Accounts Receivable 1.3.1
130002 Unbilled Receivables 1.3.2
130003 Related Party Receivables 1.3.3
130004 Other Receivables 1.3.4
100004 Inventory 1.4
140001 Raw Material and Supplies 1.4.1
140002 Work In Process 1.4.2
140003 Finished Goods 1.4.3
140004 Merchandise 1.4.4
140005 Inventory Valuation Reserve 1.4.5
140006 Inventory LIFO Reserve 1.4.6
140007 Other Inventory 1.4.7
100005 Accrued Assets 1.5
150001 Prepaid Expense 1.5.1
150002 Accrued Revenue 1.5.2
150003 Nontrade Receivables 1.5.3
150004 Accrued Tax Assets 1.5.4
150005 Other Accrued Assets 1.5.5
100006 Property, Plant and Equipment 1.6
160001 Land and Land Improvements 1.6.1
160002 Buildings, Structures and Leasehold Improvements 1.6.2
160003 Machinery and Equipment 1.6.3
160004 Furniture and Fixtures 1.6.4
160005 Leased (right to use) Assets Classified as PP&E 1.6.5
160006 Lease Assets (assets held for lease) 1.6.6
160007 Other Property, Plant and Equipment 1.6.7
160008 Acquisitions In Progress 1.6.8
100007 Intangible Assets Excluding Goodwill 1.7
170001 Intellectual Property 1.7.1
170002 Computer Software 1.7.2
170003 Trade and Distribution Assets 1.7.3
170004 Contracts and Rights 1.7.4
170005 Leased (right to use) Assets 1.7.5
170006 Other Intangible Assets 1.7.6
170007 Acquisitions In Progress (stand alone asset) 1.7.7
170008 Acquisitions In Progress (business combination) 1.7.8
100008 Goodwill 1.8
100009 Other Assets 1.9
190001 Contracts and Contract Assets 1.9.1
190002 Deferred Costs 1.9.2
190003 Assets Held for Disposal 1.9.3
190004 Miscellaneous Assets 1.9.4
200000 Liabilities 2
200001 Payables 2.1
210001 Trade Accounts Payable 2.1.1
210002 Trade Notes Payable 2.1.2
210003 Related Party Payables 2.1.3
210004 Other Payables 2.1.4
200002 Accrued Liabilities 2.2
220001 Deferred (unearned) Revenue 2.2.1
220002 Accrued Liabilities 2.2.2
220003 Unbilled Payables 2.2.3
220004 Employment-Related Liabilities 2.2.4
220005 Accrued Tax Liability 2.2.5
220006 Interest and Dividends Payable 2.2.6
220007 Other Accrued Liabilities 2.2.7
200003 Debts 2.3
230001 Notes and Loans 2.3.1
230002 Debenture Bonds 2.3.2
230003 Derivative Instruments and Other Securities 2.3.3
230004 Related Party Loans and Notes 2.3.4
230005 Other Intercompany Debts 2.3.5
230006 Other Debts 2.3.6
Liabilities Other than Debt 2.4
Finance Lease Obligations 2.4.1
Operating Lease Obligations 2.4.2
Contracts and Contract Liabilities 2.4.3
Deferred Tax Liability 2.4.4
Liability for Uncertainty In Income Taxes 2.4.5
Provisions (contingent liabilities) 2.4.6
Asset Retirement Obligations 2.4.7
Accumulated Deferred Investment Tax Credit 2.4.8
Other Liabilities Other Than Debt 2.4.9
Other Liabilities 2.5
Equity 3
Owners, Partners, Stockholders Equity 3.1
Common Equity, Stock 3.1.1
Preferred Equity, Stock 3.1.2
Retained Earnings 3.2
Appropriated 3.2.1
Unappropriated 3.2.2
Retained Earnings Deficit 3.2.3
Suspense Account 3.2.4
Accumulated Other Comprehensive Income (Loss) 3.3
Foreign Currency Translation Adjustment 3.3.1
Debt Securities, Available-For-Sale, Adjustment 3.3.2
Other Than Temporary Impairment, Net Credit Loss, Debt Securities 3.3.3
Derivatives, Cash Flow Hedge, Cumulative Gain (Loss) 3.3.4
Defined Benefit Plan, Adjustment 3.3.5
Financial Liability, Fair Value Option, Adjustment 3.3.6
Other Equity 3.4
Treasury Stock 3.4.1
Unearned ESOP Shares 3.4.2
 Outstanding Warrants and Rights 3.4.3
Deferred Employee Stock Ownership Plan 3.4.4
Receivable From Officers, Directors For Issuance Of Capital Stock 3.4.5
Receivable From Shareholders Or Affiliates For Issuance Of Capital Stock 3.4.6
Stock Subscriptions Receivable 3.4.7
Deferred Compensation Equity 3.4.8
Other Capital 3.4.9
Equity Attributable to Noncontrolling (minority) Interest 3.5
Revenue 4
Goods and Services (contracts) 4.1
Goods (point of time) 4.1.1
Services (over time) 4.1.2
Adjustments 4.1.3
Related Party Revenue 4.2
Intercompany Revenue 4.2.1
Sales to Officers 4.2.2
Sales to Other Related Parties 4.2.3
Other Operating Income 4.3
500000 Expenses 5
500001 Classified By Function 5.1
510001 Cost Of Sales 5.1.1
511001 Cost Of Goods Sold 5.1.1.1
511002 Cost Of Services Rendered 5.1.1.2
510002 Selling, General and Administrative Expenses 5.1.2
522001 Sales and Marketing 5.1.2.1
522002 General and Administrative Expenses 5.1.2.2
520003 Other Operating Expenses 5.1.3
500002 Classified By Nature 5.2
Merchandise, Material, Supplies and Utilities 5.2.1
Employee Related Expenses 5.2.2
Services 5.2.3
Rent, Depreciation, Amortization and Depletion 5.2.4
Other Operating Expenses 5.2.5
500003 Related Party Expenses 5.3
Intercompany Expenses 5.3.1
Purchases from Officers 5.3.2
Purchases from Other Related Parties 5.3.3
Nonoperating Income and Expense 6
Interest Income 6.1
Interest Income, Unrelated Party 6.1.1
Interest Income, Related Party 6.1.2
Interest Income, Other 6.1.3
Interest Expense 6.2
Interest Expense, Unrelated Party 6.2.1
Amortization Of Debt Issuance Costs 6.2.2
Finance Lease, Interest Expense 6.2.3
Interest Expense, Related Party 6.2.4
Interest Expense, Other 6.2.5
Investment Income 6.3
Royalty Income, Nonoperating 6.3.1
Rental Income, Nonoperating 6.3.2
Other Investment Income 6.3.3
Gains and Losses 6.4
 Foreign Currency Transaction Gain (Loss) 6.4.1
Gain (Loss) On Contract Termination 6.4.2
Gain (Loss) On Condemnation 6.4.3
Loss From Catastrophes 6.4.4
Gain (Loss) On Extinguishment Of Debt 6.4.5
Impairment Loss 6.4.6
Other Gains and Losses 6.4.7
Income (Loss) from Equity Method Investments 6.5
Other Nonoperating Income (Expense) 6.6
Taxes Other Than Income 7
Property (Real Estate) Tax 7.1
Highway Taxes 7.2
Customs Fees and Duties (Not Classified as Sales of Excise) 7.3
Administrative Fees (Revenue Stamps) 7.4
Non-Refundable VAT, GST (foreign operations) 7.5
Income Tax Expense (Benefit) 8