FASB Codification
The stockholder’s equity comprises of the retained earnings, stock, capital and a lot more that hold the place on the balance sheet. Stockholder’ equity is an essential segment of any organization. On searching and clicking on different sections of the FASB codification, it is beyond doubt that things are not the seen and most parts seemed new to me. To begin with, I was told about what the instructor wanted to teach turning on the FASB codification 505-10-60, the section covered the issue to do with relationships (McCarthy, Kusaila, & Grasso, 2019). In my mind, I figured out it must be the relationship between the company, which is logical. To my surprise, it was the kind of relationship regarding the changes among the comprehensive income, determining what is considered as the equity or the liability and the debts.
Typically I usually determine the equity as well as liabilities through the comparison of the charts available. However, concerning the concepts of the accounting class as it progress, the equity and liabilities comparison can be conducted between the companies (McCarthy, Kusaila, & Grasso, 2019). The accounting class, have helped in learning different concept related to a real-life situation that, I have been figuring out based on assumptions. Based on what I have learned, is there a specific category that will always be the stockholder’s equity? I also know that capital will fall under stockholder’s equity. Then what if it was not? Can that alone make the balance sheet anyway different? Don't use plagiarised sources.Get your custom essay just from $11/page
Additionally, I have taken the initiative to review balance sheets from various companies. The balance sheets indeed look very much different. Besides having different names of how to term the liabilities or even equity, however, they tend to imply a similar thing just named or worded d differently. Therefore, getting the answer will help me figure out what goes own.
Reference
McCarthy, M., Kusaila, M., & Grasso, L. (2019). Intermediate accounting and auditing: Does course delivery mode impact student performance?. Journal of Accounting Education, 46, 26-42.