1. FASB had four primary goals in developing the codification. List these four goals:
1. Reduce the amount of time and effort required to solve an accounting research issue
2. Mitigate the risk of noncompliance through improved usability of the literature
3. Provide accurate information with real-time updates as Accounting Standards Updates are released
4. Assist the FASB with the research and convergence efforts.
2. List three SEC authoritative guidance, standard and interpretations included in the codification:
1. Regulation S-X - The Sarbanes-Oxley Act 2002
2. Staff Accounting Bulletins (SAB)
3. EITF Topic - Emerging Issues Task Force
3. The accounting literature replaced by the FASB Codification includes (list five):
1. Improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and reliability, and on the qualities of comparability and consistency.
2. Keep standards current to reflect changes in methods of doing business and in the economy.
3. Consider promptly any significant areas of deficiency in financial reporting that might be improved through standard setting.
4. Promote international convergence of accounting standards concurrent with improving the quality of financial reporting.
5. Improve common understanding of the nature and purposes of information in financial reports.
4. For the following five FASB standards (FAS), provide the corresponding ASC Topic#:
FAS 141(R): ____805______________
FAS 52: ____830______________
FAS 13: ____840______________
FAS 133: ____815______________
FAS 115: ____320______________
5. Explain the following ASC references:
• FASB ASC 310-10-05-2:
310 (Receivables) ( 10 (Overall) ( 05 (Overview and Background) ( 2 (general guidance for receivables)
