swaitsandClaude Fable 5.1
790ec8c0e6
bookspec/spec holds the first edition: the model and the five laws (00-model.md) and one file per area, each B-rule a section with its status, a MUST/MAY statement, sources pinned either to a vendored source with a verbatim quotation or to an exact external paragraph, its symbolic form, its examples and its applicability. B-39, B-40, B-43 and B-45 are reserved sections (allocated, not yet stated in rules.md); B-44 is stated in rules.md and now carries its bookspec id and CONVENTION status. Eight new examples show the laws that had none, each figure worked by hand: an unbalanced entry is refused (Pacioli ch. 36, Pub. 583), a negative or zero line is refused, a fraction of a cent is refused (ISO 4217), a child account takes its parent's type, the trial balance and the accounting equation on one small book (cash 6550.25 = loan 2000 + capital 5000 + (sales 750.50 - rent 1200.25)), a reversal leaves the original standing and a second reversal is refused, a close sweeps revenue and expenses into Retained Earnings (3999) and the closed quarter takes no late entry, and cents add exactly. The refusal vocabulary gains unbalanced, negative_amount, zero_amount, too_few_lines, finer_than_minor_unit, parent_type_mismatch, already_reversed and period_closed; a refused entry may carry a non-positive amount. The checker's spec.rs fails the build on a rule without its section, a statement without MUST/SHOULD/MAY, a pin that is not verbatim in its vendored source, examples that differ from the catalogue, or more than 60 pages. Co-Authored-By: Claude Fable 5.1 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01HS8WZziDnyxunC23MUxrLp
15 lines
1.1 KiB
Markdown
15 lines
1.1 KiB
Markdown
# Area: prepaid
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Prepaid expenses and deferred revenue.
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### BS-prepaid-1: Prepaid expenses and deferred revenue are recognized over the period benefited or earned (B-16)
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- **Status:** AUTHORITY (revenue); CONVENTION (prepaids)
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- **Statement:** A payment received before a good or service is transferred MUST be a contract liability, recognized as revenue as the performance obligation is satisfied; a prepaid expense MUST be an asset recognized as the benefit is used. A schedule MUST recognize exactly its total over its months: by the day (first and last partial months by their days, the last taking the remainder) or in equal months from the first.
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- **Sources:**
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- external: ASC 606-10-45-2 (contract liability); ASC 606-10-25-23 (recognize revenue when a performance obligation is satisfied); ASC 340-10-05-4 and ASC 210-10-45-1(g)
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- vendored `sources/irs-capitalization.md`: "1.263(a)-4(f)"
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- **Symbolic form:** `sum_m recognized_m = total`; `recognized_m >= 0`.
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- **Examples:** `schedule-daily-deferred-revenue`, `schedule-daily-small-first-and-last-month`, `schedule-equal-months-start-on-the-first`
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- **Applicability:** accrual-basis entities.
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