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Understanding GAAP
So many contracts contain the phrase “in accordance with generally accepted accounting principles,” but do lawyers really understand what this phrase means or how it may affect a client in any given contract? Generally accepted accounting principles, often referred to simply as GAAP, constitute a body of rules, principles, and practices that is not as well defined as many people think, despite the fact that the fortunes of a company, its managers, and its investors can rise and fall depending on how GAAP is applied to determine the company's financial results. Before placing the above phrase in a contract, a lawyer should have at least a basic understanding of how that phrase may operate within the contractual terms.
U.S. GAAP is the term that describes the rules companies use to prepare financial statements ' the rules that tell companies how to account for transactions and disclose the results. When people refer to GAAP, they generally mean the body of accounting rules developed from a succession of different standard setters. Today, these rules have mostly been rolled into one primary authoritative source known as the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“Codification”). However, not all of the rules that companies follow as GAAP are found in the Codification. The Codification excludes some followed guidance and even leaves some of the principles up to industry practice. For example, the very basic definition of an asset is not in the Codification. The term “asset” is defined in a FASB Concepts Statement, but FASB Concepts Statements have been excluded from the Codification and, thus, are non-authoritative literature that, nonetheless, are considered GAAP in the absence of specific guidance in the Codification.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.