Welcome to GAAP Logic
GAAP Logic is a (very) smart decision app that navigates you through complex accounting guidance without having to dig through the FASB Codification or any other mind-numbing research tools. Determining the appropriate accounting treatment of anything is for the most part working down through the hierarchy if accounting guidance, eliminating the non-applicable due to scope exceptions and other factors. Pick your subject, respond to questions and get an answer. It's really that simple.
Each subject covers a specific area of accounting. For example, Equity-Linked Transactions covers contracts and contract terms that are linked to an entity's own equity. These types of contracts and features are difficult to analyze in part because the accounting guidance is dense and spread throughout the Codification. GAAP Logic walks you step-by-step through the hierarchy of GAAP, with clear explanations, examples and FAQs along the way. As you go, your responses will be evaluated and the app will continue to the next question or, if the section your in doesn't apply, fork to entirely different set of questions. At each fork, the app generates an explanation of its conclusion. Eventually, you will arrive at an Accounting Recommendation which will explain the accounting guidance applicable to your transaction or contract. After that, it's just debits and credits.
Change your mind on a previous response? Easy! Just change your response and the app will reset from that point.
Want to experiment? Just clone your project at any time. It's an exact copy that you can apply different responses to and see the impact on the accounting recommendation.
All done? Print a report showing each question, a brief summary of its relevance, your response, any comments you choose to add as you go, along with the intermediate decisions the app reach and the final Accounting Recommendation. You now have a report that you can hand your auditors without spending thousands on a consultant. After all, we're accountants. It's about the money!!