swaitsandClaude Opus 5.5
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Read in the ASC basic view and vendored as short quotes with paragraph numbers (docs/spec/sources/fasb-asc.md). Depreciation: any systematic and rational allocation of cost less salvage (360-10-35-4); prepaids are current assets with no prescribed expensing method (340-10-05-4, 210-10-45-1/2); cash flows gross and classified three ways, owners' advances financing (230-10-45-7/10/14(b)/15(b)); a principal's revenue is gross (606-10-55-37B). Citation fixed: 230-10-45-14(b), not (2). Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01GWVo7x3UHw5kwCUaWxiejX
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FASB Accounting Standards Codification: paragraphs read directly
Read 2026-10-14 in the ASC's basic view (asc.fasb.org, Stephen's login). The Codification is copyrighted by the Financial Accounting Foundation, so this file keeps only short quotes and paraphrase, with the paragraph numbers to look up. Earlier ASC paragraphs were read through Deloitte's DART roadmaps (see README).
360-10-35-4 (Property, plant, and equipment: depreciation)
A productive facility's cost is spread over its expected useful life, allocated "as equitably as possible" to the periods that get its services. Depreciation distributes cost, "less salvage (if any)", over the estimated useful life "in a systematic and rational manner"; it is "a process of allocation, not of valuation." No method is prescribed. → B-15: straight line, salvage never depreciated, partial months by days (each day of service bears the same cost) is one systematic and rational allocation.
340-10-05-2, -05-4, -05-5 (Other assets and deferred costs: prepaids)
Prepaid expenses are assets "typically used up or expire within the normal operating cycle," paid "in advance of their use or consumption" (05-4); examples include insurance, interest, rents, taxes, and advertising not yet received (05-5). The Subtopic covers only their nature (05-2): it prescribes no expensing method. → B-16: a prepaid is an asset, expensed over the months it covers (a convention; the ASC is silent on the method).
210-10-45-1, -45-2, -45-5 (Balance sheet: current assets and liabilities)
Prepaid expenses are among current assets (45-1(g)), not because they become cash but because they would otherwise use current assets in the operating cycle (45-2). A total of current liabilities "shall be presented in classified balance sheets" (45-5): the rule applies when a balance sheet is classified. → wanderbooks' balance sheet is unclassified (by element), which this Subtopic permits; a classified layout would need current/noncurrent account roles.
230-10-45-7, -10, -12(a), -13(a), -14(b), -15(b) (Statement of cash flows)
Gross amounts are "more relevant" than net (45-7). Cash receipts and payments are classified "as resulting from investing, financing, or operating activities" (45-10). Collections on, and disbursements for, loans the entity makes are investing (45-12(a), 45-13(a)). Proceeds of "other short- or long-term borrowing" are financing inflows (45-14(b)); "repayments of amounts borrowed" are financing outflows (45-15(b)). → B-14: money owners advance (Due to Shareholders) is borrowing, so financing, gross; a loan the company makes is investing, gross.
606-10-55-36 through 55-38 (Revenue: principal or agent)
An entity controlling the specified good or service before transfer is the principal (55-37) and recognizes revenue "in the gross amount of consideration" it expects (55-37B); an agent recognizes only its fee or commission (55-38). → B-17: an app seller is the principal for its app, so its revenue is the gross price; the platform's commission is an expense.