This Subsection provides guidance on presentation matters for receivables, specifically:
- a
Loans or trade receivables
- b
Foreclosed and repossessed assets
- c
- d
- e
Discount and premium
- f
Unearned discounts
- g
Receivables classified as current assets
- h
Cash flows
- i
Receivables from officers, employees, or affiliates
- j
Note received as an equity contribution.
Foreclosed and repossessed assets shall be classified as a separate balance sheet amount or included in other assets on the balance sheet with separate disclosures in the notes to financial statements. Certain returned or repossessed assets, such as inventory, shall not be classified separately if the assets subsequently are to be utilized by the entity in operations.
See paragraphs
for guidance on presentation matters related to the discount or premium on a note.
Unearned discounts (other than cash or quantity discounts and similar items), finance charges, and interest included in the face amount of receivables shall be shown as a deduction from the related receivables.
As indicated in its definition for accounting purposes, the term current assets is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. Paragraph 210-10-45-1 notes that the term current assets comprehends the following types of receivables: - a
Trade accounts, notes, and acceptances receivable
- b
Receivables from officers, employees, affiliates, and others, if collectible in the ordinary course of business within a year
- c
Installment or deferred accounts and notes receivable if they conform generally to normal trade practices and terms within the business.
See Section
210-10-45 for further guidance on the required presentation of current assets in the balance sheet.
See Topic
230 for further guidance on the classification of cash flows from receivables in the cash flow statement.