#financial-statements
Financial Statements
Understand and prepare balance sheets, income statements, and cash flow reports
FASB Just Quietly Exempted Equipment Leases From a Disclosure Rule You Probably Didn't Know Applied to You
FASB's ASU 2025-12 (Issue 5) excludes sales-type and direct financing lease receivables from the ASU 2022-02 vintage and loan-modification disclosures, effective for annual periods beginning after December 15, 2026. Equipment lessors still apply CECL to net lease investments but no longer need origination-year write-off tables for those leases.
Why Small Business Loans Get Denied: Approval Rates, Lender Odds, and Fixes From the Fed's 2025 Credit Survey
The Federal Reserve's 2025 Small Business Credit Survey found only 42% of applicants received full funding and 22% received nothing. Full-approval rates ranged from 57% at small banks to a 46% denial rate at large banks, and the top denial reasons — credit score (45%), collateral (36%), cash flow (33%) — are largely visible in a business's own books before applying.
PCAOB Bars Auditor Jennifer Crofoot Over Skipped Engagement Quality Reviews: What It Teaches You About Vetting an Audit Firm
In December 2025 the PCAOB barred CPA Jennifer Crofoot for at least three years and fined Fruci & Associates $50,000 after four public-company audits were released without the mandatory engagement quality review under AS 1220. Here is what the second-reviewer requirement actually protects against, and five concrete questions to ask before relying on any firm's audit opinion.
Private School Bookkeeping: Deferred Tuition and Fund Accounting Explained
Private school tuition is an exchange transaction under ASC 606, not a donation, so tuition collected before the school year starts must be booked as deferred revenue and recognized ratably over 10 or 12 months, while donor-restricted gifts follow separate ASC 958 rules.
Apple's Best March Quarter Ever: $111.2B Revenue, a New $100B Buyback, and Retained Earnings Turn Positive Again
Apple's Q2 FY2026 revenue reached $111.2 billion (+17% YoY) with expanding margins across every geographic segment, and a new $100 billion buyback authorization pushed retained earnings positive for the first time since fiscal 2021. Full income statement and balance sheet, FY2021-Q2 FY2026, in a public Beancount ledger.
NVIDIA Q1 FY2027: $81.6B Revenue, and $15.9B of Net Income That Isn't From Chips
NVIDIA's Q1 FY2027 revenue hit $81.6B (+85% YoY) and net income $58.3B (+211%), but $15.9B of that profit came from marking up its equity portfolio, not selling chips — core net income is closer to $42.4B. The quarter also retired the five-segment breakout for two platforms, Data Center (92% of revenue) and Edge Computing. Full income statement and balance sheet, FY2024–Q1 FY2027, in a public Beancount ledger.
Structural Engineering Firm Bookkeeping: PoC Revenue, WIP, and E&O Tail Coverage
Structural engineering firms should recognize revenue by design-phase completion under GAAP percentage-of-completion (schematic 15–20%, design development 25–30%, construction documents 35–40%, construction administration 10–15%), track unbilled work-in-process separately from AR, and reserve for claims-made E&O tail coverage that can run 100–300% of an annual premium.
Tesla Q1 2026: Margins Hit a 5-Quarter High While Deliveries Keep Falling — and a New $25B+ Capex Guide Rattled the Stock
Tesla's Q1 2026 revenue reached $22.4 billion (+16% YoY) with automotive gross margin hitting a 5-quarter high of 19.2% ex-regulatory-credits, but a capex guidance raise to over $25 billion and a $2.0 billion SpaceX equity stake sent the stock down 3.56% despite the earnings beat. Full income statement and balance sheet, FY2021-Q1 2026, in a public Beancount ledger.
Airbnb FY2025 Earnings: A $12 Billion Platform Pays Full Price for Its Second Act
Airbnb closed FY2025 with $12.2B revenue (+10.3%), $2.5B net income, and a net margin down 3.4 points as it funded services, experiences, and hotels while repurchasing $3.8B in stock. A bull-vs-bear analysis backed by an open double-entry Beancount ledger covering FY2023 through Q1 2026.
FASB ASU 2024-03: What the New Expense Disaggregation Disclosure Rule Means for Your Business
FASB's ASU 2024-03 (nicknamed DISE) requires public companies to break income statement expenses like compensation, depreciation, and inventory purchases into footnote detail starting with fiscal years after December 15, 2026, and private companies preparing for a sale, loan, or IPO should get their chart of accounts ready now.
Microsoft FY2026 Q3: Azure Hits 40% Growth as the $190 Billion Capex Bet Compounds
Microsoft's FY2026 Q3 revenue rose 18.3% to $82.9B with net income up 23.1% to $31.8B, while Azure re-accelerated to 40% growth — but gross margin compressed for a third straight quarter (69.1% → 68.0% → 67.6%) as capex tracks toward $190B for calendar 2026. Full income statement and balance sheet, FY2020–FY2026 Q3, in a public Beancount ledger.
SpaceX's First Public Earnings: Starlink's $11.4B Profit Machine Is Bankrolling a $6.4B AI Bet
SpaceX's IPO filing shows FY2025 revenue of $18.7B (+33%) and a $4.9B net loss — Starlink earned a $4.4B operating profit at a 38.8% margin while the AI segment (X and xAI) lost $6.4B on $3.2B of revenue and consumed $12.7B of capex. A bull-vs-bear analysis backed by an open double-entry Beancount ledger covering FY2023 through Q1 2026.