npx claudepluginhub brainbytes-dev/everything-claude-financeThis skill uses the workspace's default tool permissions.
Provides UI/UX resources: 50+ styles, color palettes, font pairings, guidelines, charts for web/mobile across React, Next.js, Vue, Svelte, Tailwind, React Native, Flutter. Aids planning, building, reviewing interfaces.
Fetches up-to-date documentation from Context7 for libraries and frameworks like React, Next.js, Prisma. Use for setup questions, API references, and code examples.
Integrates PayPal payments with express checkout, subscriptions, refunds, and IPN. Includes JS SDK for frontend buttons and Python REST API for backend capture.
name: gaap-standards description: Key US GAAP standards — ASC 606, 842, 350, 805
ASC 606 mirrors IFRS 15 with the same five-step model. Key differences from IFRS 15 are narrow but important.
Five-step model (same as IFRS 15):
Key US GAAP-specific guidance:
Practical expedients:
Unlike IFRS 16, ASC 842 retains a dual classification model for lessees.
Classification test (any ONE triggers finance lease):
Finance lease (formerly capital lease):
Balance sheet: ROU asset + lease liability (same as IFRS 16)
P&L: Amortization of ROU asset (straight-line, in operating expense)
+ Interest on lease liability (front-loaded, in interest expense)
= Total expense is front-loaded
Cash flow: Interest in operating; principal in financing
Operating lease:
Balance sheet: ROU asset + lease liability (same recognition as IFRS 16)
P&L: Single lease expense, recognized straight-line over lease term
(allocated between amortization and interest for BS purposes,
but reported as a single operating expense line)
= Total expense is straight-line
Cash flow: All payments in operating activities
Key difference from IFRS 16: Operating leases under ASC 842 produce straight-line expense (not front-loaded). This affects EBITDA, operating income, and interest expense comparability.
Goodwill impairment (simplified one-step test since ASU 2017-04):
Step 1 (optional): Qualitative assessment — is it more likely than not (>50%)
that fair value of reporting unit < carrying amount? If no, stop — no impairment.
Step 2 (quantitative): Compare fair value of reporting unit to its carrying amount
(including goodwill).
If FV < Carrying Amount → impairment loss = Carrying Amount - FV
Impairment loss cannot exceed the goodwill allocated to that reporting unit.
Key differences from IFRS (IAS 36):
Indefinite-lived intangible assets (e.g., trade names):
Finite-lived intangible assets:
Acquisition method (same framework as IFRS 3):
Goodwill = Consideration transferred (FV)
+ NCI (at fair value or proportionate share — policy election per deal)
- Net identifiable assets acquired at fair value
Key US GAAP-specific differences from IFRS 3:
Acquisition-related costs: Expensed as incurred (not part of consideration). Same under IFRS 3.
Deferred tax framework:
Temporary Difference = Book Basis of Asset/Liability - Tax Basis
If Book Basis of Asset > Tax Basis → Deferred Tax Liability (DTL)
If Book Basis of Asset < Tax Basis → Deferred Tax Asset (DTA)
(Reverse for liabilities)
DTA recognition:
Key differences from IFRS (IAS 12):
Tax rate reconciliation:
Statutory Rate ___%
+ State taxes (net of federal benefit) ___%
+ Non-deductible expenses ___%
- Tax-exempt income (__%)
+ Foreign rate differential ___%
+ Valuation allowance change ___%
+ Other ___%
= Effective Tax Rate ___%
| Topic | US GAAP | IFRS |
|---|---|---|
| Revenue (general) | ASC 606 | IFRS 15 — largely converged |
| Leases (lessee) | ASC 842: dual model (operating + finance) | IFRS 16: single model (all on BS, front-loaded) |
| Goodwill impairment | One-step quantitative (or qualitative screen) | Higher of FVLCOD and VIU at CGU level |
| Inventory | LIFO permitted | LIFO prohibited |
| Development costs | Expensed (except software under ASC 985/350) | Capitalized if criteria met (IAS 38) |
| Extraordinary items | Prohibited (since ASU 2015-01) | Prohibited (IAS 1) |
| Deferred tax — DTA | Full recognition + valuation allowance | Recognize only if probable |
| Revaluation of PP&E | Not permitted (cost model only) | Permitted (revaluation model, IAS 16) |
| Contingencies | ASC 450: probable + estimable → accrue | IAS 37: probable (>50%) + reliable estimate → provision |
| Business combinations | ASC 805 | IFRS 3 — largely converged |
=== US GAAP COMPLIANCE CHECKLIST ===
Standard | Area | Status | Notes
ASC 606 | Revenue policy documented | [ ] |
ASC 606 | PO identification | [ ] |
ASC 606 | Contract cost capitalization | [ ] |
ASC 842 | Lease classification assessed | [ ] |
ASC 842 | ROU assets/liabilities on BS | [ ] |
ASC 842 | Discount rate documented | [ ] |
ASC 350 | Reporting units defined | [ ] |
ASC 350 | Annual goodwill impairment test | [ ] |
ASC 350 | Indefinite-lived intangibles | [ ] |
ASC 805 | PPA completed within 1 year | [ ] |
ASC 805 | Contingent consideration FV | [ ] |
ASC 740 | DTA valuation allowance | [ ] |
ASC 740 | Rate reconciliation | [ ] |
ASC 740 | Uncertain tax positions (FIN 48)| [ ] |
=== ASC 842 LEASE CLASSIFICATION ===
Does ownership transfer to lessee? → YES → Finance Lease
→ NO ↓
Is there a bargain purchase option? → YES → Finance Lease
→ NO ↓
Is lease term ≥ 75% of economic life? → YES → Finance Lease
→ NO ↓
Is PV of payments ≥ 90% of FV? → YES → Finance Lease
→ NO ↓
Is asset specialized? → YES → Finance Lease
→ NO → Operating Lease
Before finalizing US GAAP accounting, verify: