Basic GAAP chart of accounts

Release notes

This chart of accounts includes general US GAAP compatible classifications and sub-classifications.

The FASB does not publish a "US GAAP chart of accounts".

Companies may use any chart of accounts provided it is consistent with published recognition guidance (link: asc.fasb.org).

This chart has been designed to be consistent with this guidance.

While users may delete unnecessary / add additional sub-accounts, they are advised to keep its general structure intact.

Prior to use, users are advised to add additional, specific accounts.

For example, a company with petty cash and two bank accounts, would add:

Assets 1
Cash And Investments 1.1
Cash And Cash Equivalents 1.1.1
Petty Cash 1.1.1.1
Cash in bank 1.1.1.2
Cash in bank, account one 1.1.1.2.1
Cash in bank, account two 1.1.1.2.2
--- ---

A company with customers (i.e. customer # 123, customer # 234, customer number # 345), would add:

Assets 1
--- ---
Receivables 1.2
Accounts, Notes And Loans
1.2.1
Accounts receivable 1.2.1.1
Customer 123 1.2.1.1.123
Customer 234 1.2.1.1.234
Customer 345 1.2.1.1.345
--- ---

In addition to permanent accounts, temporary accounts for individual receivables (i.e invoice # 00321, invoice # 00332, invoice # 00358), may also be added:

Assets 1
--- ---
Receivables 1.2
Accounts, Notes And Loans
1.2.1
Accounts receivable 1.2.1.1
Customer 123 1.2.1.1.123
Invoice 00321 1.2.1.1.123-00321
Invoice 00321 1.2.1.1.123-00332
Invoice 00321 1.2.1.1.123-00358
--- ---

This chart does not make a current/non-current distinction.

As the current / non-current status of an item is a disclosure rather than recognition issue, incorporating the current / non-current distinction into the account structure not only adds unnecessary complexity, but can lead to unnecessary item reclassification.

For example, a company can acquire an available-for-sale financial instrument with the intention of holding it for less than 12 months then, during the holding period, change its intention.

Nevertheless, as some companies prefer a chart of accounts that makes this distinction, a current / non-current chart of accounts is available to subscribers.

Important: this chart includes expenses classified by both nature and function.

US GAAP does not permit nature of expense, income statment reporting.

Nevertheless, a nature based account structure yields superior operational results.

For example, when accounts are initially organized by function, the result will resemble:

Expenses Classified By Function 5.1
Cost Of Revenue 5.1.1
Cost Of Goods Sold 5.1.1.1
--- ---
Emloyee benefits (a.k.a. wages and salaries) 5.1.1.1.1
Wages 5.1.1.1.1.1
Salaries 5.1.1.1.1.2
--- ---
Cost Of Services Rendered 5.1.1.2
--- ---
Emloyee benefits 5.1.1.2.1
Wages 5.1.1.2.1.1
Salaries 5.1.1.2.1.2
--- ---
Selling, General, Administrative 5.1.2
Selling and Marketing 5.1.2.1
--- ---
Emloyee benefits 5.1.2.1.1
Salaries 5.1.2.1.1.2
Commissions 5.1.2.1.1.3
--- ---

When accounts are initially organized by nature, the result can resemble:

  Account   Department
--- ---   ---
Expenses Classified By Nature 5.2    
Employee Benefits 5.2.2    
Production department 5.2.2 - 5.1.1.1
Service department 5.2.2 - 5.1.1.2
Sales department 5.2.2 - 5.1.2.1
Administrative department 5.2.2 - 5.1.2.2
--- ---    

Also note, while it would be possible to add a digit for country of domicile, subsidiary, segment, reporting unit etc., in practice it is more practical for each such entity to maintain separate accounts, which are then consolidated:

  Country   Account   Department
---     ---    
Employee Benefits - US 1 - 5.2.2    
Production department - US 1 - 5.2.2 - 5.1.1.1
Service department - US 1 - 5.2.2 - 5.1.1.2
Sales department - US 1 - 5.2.2 - 5.1.2.1
Administrative department - US 1 - 5.2.2 - 5.1.2.2
---     ---    
Employee Benefits - France 2 - 5.2.2    
Production department - France 2 - 5.2.2 - 5.1.1.1
Service department - France 2 - 5.2.2 - 5.1.1.2
Sales department - France 2 - 5.2.2 - 5.1.2.1
Administrative department - France 2 - 5.2.2 - 5.1.2.2
---     ---    

 

Account Account # Balance Depth 0
Assets 1 Dr 0 1
Cash, Cash Equivalents And Investments 1.1 Dr 1 2
Cash In Bank And On Hand 1.1.1 Dr 2 3
Cash Equivalents 1.1.2 Dr 2 8
Restricted Cash And Investments 1.1.3 Dr 2 29
Investments, Derivatives And Securities 1.1.4 Dr 2 35
Investments In Related Parties 1.1.5 Dr 2 75
Other (Miscellaneous) Cash, Cash Equivalents And Investments 1.1.6 Dr 2 81
Trade Receivables And Contract Assets 1.2 Dr 1 82
Trade Accounts Receivable 1.2.1 Dr 2 83
Trade Notes Receivable 1.2.2 Dr 2 89
Receivables With Imputed Interest 1.2.3 Dr 2 90
Unbilled Receivables 1.2.4 Dr 2 91
Related Party Receivables 1.2.5 Dr 2 94
Contracts And Contract Assets 1.2.6 Dr 2 103
Notes And Loans (Non-Trade) Receivable 1.2.7 Dr 2 115
Accounts And Other Receivables 1.2.8 Dr 2 129
Accounts Receivable From Securitization 1.2.9 Dr 2 130
Other (Miscellaneous) Trade Receivables And Contract Assets 1.2.10 Dr 2 131
Inventory 1.3 Dr 1 132
Raw Material And Supplies 1.3.1 Dr 2 133
Work In Process 1.3.2 Dr 2 158
Finished Goods 1.3.3 Dr 2 163
Merchandise 1.3.4 Dr 2 164
Inventory For Long-Term Contracts Or Programs 1.3.5 Dr 2 167
Inventory Valuation Reserves 1.3.6 (Cr) 2 170
Inventory Lifo Reserve 1.3.7 (Cr) 2 171
Other Inventory 1.3.8 Dr 2 172
Miscellaneous Inventory 1.3.9 Dr 2 185
Accruals And Other Assets 1.4 Dr 1 186
Prepaid Expense 1.4.1 Dr 2 187
Accrued Revenue, Nontrade Receivables And Other Accruals 1.4.2 Dr 2 206
Contract Assets 1.4.3 Dr 2 231
Capitalized Contract Cost 1.4.4 Dr 2 233
Deferred Costs 1.4.5 Dr 2 234
Assets Held for Disposal 1.4.6 Dr 2 241
Additional assets 1.4.7 Dr 2 255
Miscellaneous Assets 1.4.8 Dr 2 295
Property, Plant And Equipment 1.5 Dr 1 296
Land And Land Improvements 1.5.1 Dr 2 297
Buildings And Improvements 1.5.2 Dr 2 318
Machinery And Equipment 1.5.3 Dr 2 326
Furniture And Fixtures 1.5.4 Dr 2 403
Computer Software Classified As PP&E 1.5.5 Dr 2 406
Leasehold Improvements 1.5.6 Dr 2 407
Financial (Capital) Leased Assets 1.5.7 Dr 2 408
Property Subject To Or Available For Operating Lease 1.5.8 Dr 2 411
Additional Property, Plant And Equipment Items 1.5.9 Dr 2 412
Other (Miscellaneous) Property, Plant And Equipment 1.5.10 Dr 2 415
Assets Under Construction 1.5.11 Dr 2 416
Intangible Assets Excluding Goodwill 1.6 Dr 1 419
Intellectual Property 1.6.1 Dr 2 420
Computer Software 1.6.2 Dr 2 438
Trade And Distribution Assets 1.6.3 Dr 2 442
Contracts And Rights 1.6.4 Dr 2 458
Leasing Assets (Lessors And Lessees) 1.6.5 Dr 2 477
Other Intangible Assets 1.6.6 Dr 2 483
Acquisitions In Progress (Stand Alone Asset) 1.6.7 Dr 2 484
Acquisitions In Progress (Business Combination) 1.6.8 Dr 2 487
Lease (right to use) assets 1.7 Dr 1 541
Operating Lease, Right-of-Use Asset 1.7.1 Dr 2 542
Finance Lease, Right-of-Use Asset 1.7.2 Dr 2 543
Leveraged Leases, Net Investment in Leveraged Leases (Disclosure) 1.7.3 Dr 2 544
Goodwill 1.8 Dr 1 545
Liabilities 2 (Cr) 0 546
Accounts Payable And Accrued Liabilities 2.1 (Cr) 1 547
Trade Accounts Payable 2.1.1 (Cr) 2 548
Accrued Liabilities 2.1.2 (Cr) 2 551
Employment-Related Liabilities 2.1.3 (Cr) 2 572
Accrued Taxes 2.1.4 (Cr) 2 595
Interest And Dividends Payable 2.1.5 (Cr) 2 606
Deferred (Unearned) Revenue 2.1.6 (Cr) 2 609
Other Payables And Accrued Liabilities 2.1.7 (Cr) 2 628
Debt And Capital Lease Obligations 2.2 (Cr) 1 629
Notes And Loans 2.2.1 (Cr) 2 630
Debenture Bonds 2.2.2 (Cr) 2 641
Finance Lease Liability 2.2.3 (Cr) 2 642
Operating  Lease Obligations 2.2.4 (Cr) 2 643
Other Debts 2.2.5 (Cr) 2 644
Liabilities Other Than Debt 2.3 (Cr) 1 665
Contracts In Progress 2.3.1 (Cr) 2 666
Deferred Tax Liabilities, Net 2.3.2 (Cr) 2 668
Liability For Uncertainty In Income Taxes 2.3.3 (Cr) 2 669
Securities Loaned 2.3.4 (Cr) 2 670
Regulatory Liability 2.3.5 (Cr) 2 671
Provision For Premiums And Coupons 2.3.6 (Cr) 2 672
Estimated Litigation Liability 2.3.7 (Cr) 2 673
Accrued Environmental Loss Contingencies 2.3.8 (Cr) 2 674
Deferred Gas Purchases 2.3.9 (Cr) 2 675
Program Rights Obligations 2.3.10 (Cr) 2 676
Disposal Group, Including Discontinued Operation, Liabilities 2.3.11 (Cr) 2 677
Liabilities Of Business Transferred Under Contractual Arrangement 2.3.12 (Cr) 2 678
Provision For Warrantee Costs 2.3.13 (Cr) 2 679
Customer Refund Liability 2.3.14 (Cr) 2 680
Self Insurance Reserve 2.3.15 (Cr) 2 681
Business Combination, Contingent Consideration, Liability 2.3.16 (Cr) 2 682
Off-Market Lease, Unfavorable 2.3.17 (Cr) 2 683
Lease Deposit Liability 2.3.18 (Cr) 2 684
Financial Instruments Subject To Mandatory Redemption, Settlement Terms, Share Value, Amount 2.3.19 (Cr) 2 685
Restructuring Reserve 2.3.20 (Cr) 2 686
Qualified Affordable Housing Project Investments, Commitment 2.3.21 (Cr) 2 687
Asset Retirement Obligations 2.3.22 (Cr) 2 688
Accumulated Deferred Investment Tax Credit 2.3.23 (Cr) 2 696
Incentive From Lessor 2.3.24 (Cr) 2 697
Provision For Loss On Contracts 2.3.25 (Cr) 2 698
Other Liabilities Other Than Debt 2.3.26 (Cr) 2 699
Related Party Liabilities 2.4 (Cr) 1 700
Related Party Accounts Payable 2.4.1 (Cr) 2 701
Related Party Notes Payable 2.4.2 (Cr) 2 702
Due To Employees 2.4.3 (Cr) 2 703
Due To Officers Or Stockholders 2.4.4 (Cr) 2 704
Due To Affiliate 2.4.5 (Cr) 2 705
Due To Other Related Parties 2.4.6 (Cr) 2 706
Other Intercompany Liabilities 2.4.7 (Cr) 2 707
Additional Liabilities 2.5 (Cr) 1 708
Deferred Compensation Liability Not Classified As Accrued Liabilities 2.5.1 (Cr) 2 709
Deferred Rent Credit 2.5.2 (Cr) 2 713
Derivative Instruments And Hedges, Liabilities 2.5.3 (Cr) 2 714
Other Liabilities 2.5.4 (Cr) 2 718
Commitments And Contingencies 2.6 (Cr) 1 719
Equity 3 (Cr) 0 720
Stockholders Equity 3.1 (Cr) 1 721
Common Stock 3.1.1 (Cr) 2 722
Preferred Stock 3.1.2 (Cr) 2 727
Retained Earnings 3.2 Dr / (Cr) 1 731
Appropriated 3.2.1 (Cr) 2 732
Unappropriated 3.2.2 (Cr) 2 733
Retained Earnings Deficit 3.2.3 Dr 2 734
Suspense Account 3.2.4 Dr / (Cr) 2 735
Accumulated Other Comprehensive Income (Loss), Net Of Tax 3.3 Dr / (Cr) 1 736
Foreign Currency Translation Adjustment, Net Of Tax 3.3.1 Dr / (Cr) 2 737
Debt Securities, Available-For-Sale, Adjustment, After Tax 3.3.2 Dr / (Cr) 2 738
Other Than Temporary Impairment, Not Credit Loss, Net Of Tax, Debt Securities 3.3.3 (Cr) 2 739
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), After Tax 3.3.4 (Cr) 2 742
AOCI, Defined Benefit Plan, After Tax 3.3.5 Dr / (Cr) 2 743
Financial Liability, Fair Value Option, After Tax 3.3.6 Dr / (Cr) 2 744
AOCI, Derivative Qualifying As Hedge, Excluded Component, After Tax 3.3.7 Dr / (Cr) 2 745
Other Equity 3.4 Dr / (Cr) 1 746
Unearned SOP Shares 3.4.1 Dr 2 747
Receivable From Officers, Directors For Issuance Of Capital Stock 3.4.2 Dr 2 748
Receivable From Shareholders Or Affiliates For Issuance Of Capital Stock 3.4.3 Dr 2 749
Stockholders' Equity Note, Subscriptions Receivable 3.4.4 Dr 2 750
Warrants, Rights Outstanding 3.4.5 (Cr) 2 751
Treasury Stock 3.4.6 Dr 2 752
Deferred Employee Stock Ownership Plan, Issuance Of Shares Or Sale Of Treasury Shares 3.4.7 (Cr) 2 755
Deferred Compensation Equity 3.4.8 Dr 2 756
Other Additional Capital 3.4.9 (Cr) 2 757
Equity Attributable To Noncontrolling Interest 3.5 (Cr) 1 758
Partners Capital 3.6 (Cr) 1 759
Limited Liability Company Members Equity 3.7 (Cr) 1 760
Revenue 4 (Cr) 0 761
Goods And Services 4.1 (Cr) 1 762
Goods 4.1.1 (Cr) 2 763
Services 4.1.2 (Cr) 2 767
Adjustments 4.1.3 Dr 2 768
Related Party Revenue 4.2 (Cr) 1 775
Intercompany Revenue 4.2.1 (Cr) 2 776
Sales To Officers 4.2.2 (Cr) 2 777
Sales To Other Related Parties 4.2.3 (Cr) 2 778
 FASB XBRL Classified Revenues 4.3 (Cr) 1 779
Revenue from Contract with Customer, Including Assessed Tax 4.3.1 (Cr) 2 780
Sublease Income 4.3.2 (Cr) 2 781
Operating Lease, Lease Income 4.3.3 (Cr) 2 782
Sales-type Lease, Variable Lease Income 4.3.4 (Cr) 2 783
Sales-type Lease, Interest Income 4.3.5 (Cr) 2 784
Sales-type Lease, Revenue 4.3.6 (Cr) 2 787
Direct Financing Lease, Variable Lease Income 4.3.7 (Cr) 2 788
Direct Financing Lease, Interest Income 4.3.8 (Cr) 2 789
Direct Financing Lease, Revenue 4.3.9 (Cr) 2 790
Premiums Earned, Net 4.3.10 (Cr) 2 791
Revenue Not from Contract with Customer 4.3.11 (Cr) 2 792
Other Operating Income 4.4 (Cr) 1 794
Expenses 5 Dr 0 795
Expenses Classified By Function 5.1 Dr 1 796
Cost Of Sales 5.1.1 Dr 2 797
Cost Of Goods Sold 5.1.1.1 Dr 3 798
Cost Of Services Rendered 5.1.1.2 Dr 3 817
Selling, General And Administrative Expenses 5.1.2 Dr 2 833
Sales And Marketing 5.1.2.1 Dr 3 834
General And Administrative Expenses 5.1.2.2 Dr 3 858
Classified By Nature 5.2 Dr 1 884
Merchandise, Material, Supplies And Utilities 5.2.1 Dr 2 885
Employee Related Expenses 5.2.2 Dr 2 905
Services 5.2.3 Dr 2 951
Rent, Depreciation, Amortization And Depletion 5.2.4 Dr 2 1012
Other Expenses 5.2.5 Dr 2 1071
Nonoperating Income (Expense) 6 Dr / (Cr) 0 1232
Investment Income, Nonoperating 6.1 Dr / (Cr) 1 1233
Nonoperating Gains (Losses) 6.1.1 Dr / (Cr) 2 1234
Royalty Income, Nonoperating 6.1.2 Dr 2 1247
Rental Income, Nonoperating 6.1.3 Dr 2 1248
Development Profits, Nonoperating 6.1.4 Dr 2 1249
Recovery Stranded Costs 6.1.5 Dr 2 1250
Leveraged Leases, Income (Loss) 6.1.6 Dr 2 1251
Operating Lease, Initial Direct Cost Expense, over Term 6.1.7 Dr 2 1252
Sales-type Lease, Initial Direct Cost Expense, Commencement 6.1.8 Dr 2 1253
Investment Income, Net 6.1.9 Dr 2 1254
Gain (Loss) On Contract Termination 6.2 Dr / (Cr) 1 1262
Gain (Loss) On Condemnation 6.3 Dr / (Cr) 1 1263
Loss From Catastrophes 6.4 Dr 1 1264
Public Utilities, Allowance For Funds Used During Construction, Additions 6.5 Dr 1 1265
Foreign Currency Transaction Gain (Loss), Before Tax 6.6 Dr / (Cr) 1 1266
Net Periodic Defined Benefits Expense (Reversal Of Expense), Excluding Service Cost Component 6.7 Dr / (Cr) 1 1267
Other Nonoperating Income (Expense) 6.8 Dr / (Cr) 1 1268
Other Nonoperating Income 6.8.1 Dr / (Cr) 2 1269
Other Nonoperating Expense 6.8.2 (Cr) 2 1270
Interest And Debt Expense 7 Dr 0 1271
Interest Expense 7.1 Dr / (Cr) 1 1272
Interest Expense, Debt 7.1.1 Dr 2 1273
Interest Expense, Customer Deposits 7.1.2 Dr 2 1274
Debt Related Commitment Fees And Debt Issuance Costs 7.1.3 Dr 2 1275
Amortization Of Debt Issuance Costs 7.1.4 Dr 2 1276
Finance Lease, Interest Expense 7.1.5 Dr 2 1277
Interest Expense, Lessee, Assets Under Capital Lease 7.1.6 Dr 2 1278
Interest Expense, Related Party 7.1.7 Dr 2 1279
Interest Expense, Other 7.1.8 Dr 2 1280
Gain (Loss) On Extinguishment Of Debt 7.2 Dr / (Cr) 1 1281
Gain (Loss) On Extinguishment Of Debt, Before Write Off Of Debt Issuance Cost 7.2.1 Dr / (Cr) 2 1282
Write Off Of Deferred Debt Issuance Cost 7.2.2 Dr 2 1283
Induced Conversion Of Convertible Debt Expense 7.3 Dr 1 1284
Gains (Losses) On Restructuring Of Debt 7.4 Dr / (Cr) 1 1285
Gains (Losses) On Recourse Debt 7.5 Dr / (Cr) 1 1286
Gain (Loss) On Non-Recourse Debt 7.6 Dr / (Cr) 1 1287
Gain (Loss) On Repurchase Of Debt Instrument 7.7 Dr / (Cr) 1 1288
Distributions On Mandatorily Redeemable Securities 7.8 Dr / (Cr) 1 1289
Income (Loss) from Equity Method Investments 8 Dr 0 1290
Other Taxes Other Than Income 9 Dr 0 1291
Non-Refundable VAT, GST 9.1 Dr 1 1292
Property (Real Estate) Tax 9.2 Dr 1 1293
Highway Taxes 9.3 Dr 1 1294
Customs Fees and Duties (Not Classified as Sales of Excise) 9.4 Dr 1 1295
Administrative Fees (Revenue Stamps) 9.5 Dr 1 1296
Income Tax Expense (Benefit) 10 Dr / (Cr) 0 1297