...Accounting Standards Codification® Notice to Constituents (v 4.5) About the Codification FASB Accounting Standards Codification® Notice to Constituents (v 4.5) About the Codification Notice to Constituent version numbers - The Notice to Constituents contains a version number indicating the degree of change within a particular version. Versions ending with ".0" represent substantive changes to the text, whereas versions ending with a number other than zero represent editorial or clerical corrections. Page FASB Accounting Standards Codification ................................................................................... 4 Codification Goals .......................................................................................................................... 5 Codification Research System ........................................................................................................ 6 Content Matters............................................................................................................................... 7 Population of codified standards as of July 1, 2009 ................................................................... 7 Standards issued by standard setters other than the SEC ........................................................ 7 Standards issued by the SEC................................................................................................... 8 Essential and nonessential content ................................
Words: 13897 - Pages: 56
...Accounting Standards Codification® Notice to Constituents (v 4.6) About the Codification FASB Accounting Standards Codification® Notice to Constituents (v 4.6) About the Codification Notice to Constituent version numbers - The Notice to Constituents contains a version number indicating the degree of change within a particular version. Versions ending with ".0" represent substantive changes to the text, whereas versions ending with a number other than zero represent editorial or clerical corrections. Page FASB Accounting Standards Codification ................................................................................... 4 Codification Goals .......................................................................................................................... 5 Codification Research System ........................................................................................................ 6 Content Matters............................................................................................................................... 7 Population of codified standards as of July 1, 2009 ................................................................... 7 Standards issued by standard setters other than the SEC ........................................................ 7 Standards issued by the SEC................................................................................................... 8 Essential and nonessential content ................................
Words: 13896 - Pages: 56
...“Codification” means the FASB Accounting Standards Codification electronic research system developed and released by the FASB which houses, reorganizes and indexes United States financial accounting standards and related literature (FASB Accounting Standards Codification®). The codification can basically be referred to as a one stop complete authorized source of reference for GAAP framework in order to adhere to the requirements of fair financial reporting by non-governmental entities. The codification comprises of authoritative standards from FASB, AIPCA and others and it does not involve any changes to the actual standards and is applicable to both public and private companies. The FASB had three primary goals in developing the Codification: first to simplify user access by codifying all authoritative US GAAP in one spot; second to ensure that the codified content accurately represented authoritative US GAAP as of July 1, 2009, and third to create a codification research system that is up to date for the released results of standard-setting activity. Basically the reasons behind the codification was to gather all US GAAP standards and make it easier for any individual to search for guidance in one place by using keywords or by narrowing the search by categories. Additionally, it eliminated the redundancy of statements among different standards and with just one source it allows the user to cite the relevant code with up to date standards. For instance, to find out the disclosure...
Words: 1051 - Pages: 5
...Name of Student: Name of Instructor: Course: Date: Accounting Standards Codification The FASB Accounting Standard Codification is the source of authoritative Generally Accepted Accounting Principles (GAAP) documented by the FASB to be applied to nongovernmental entities. The Codification is the result of a major five-year project involving more than two hundred people from multiple entities. The Codification is effective for provisional and annual periods ending after September 15, 2009. All previous levels (a)-(d) United States GAAP standards issued by standard setter are superseded. Also, all other accounting literature not included in the codifications will be considered to be lacking authority. US GAAP considered to be lacking in accounting authority such as practice, textbook, articles and other similar content is not included in the FASB codification. The codification is very different from the structure of previous standards. The FASB had three primary goals in developing the codification. The first rationale for the new codification by the FASB was to ensure that the codified content accurately represented authoritative US GAAP by July1, 2009, besides incorporating all the latest accounting principles that are necessary for legal accounting practice. Like most professional fields, accounting is quite dynamic. Principles employed in the field of accounting keep on changing from time to time and the US GAAP has not been spared from these changes...
Words: 1537 - Pages: 7
...FASB Codification System Orientation Paper Joel Bermudez ACC/497 January 28, 2015 Nanette Morrow In a constant developing economy and globalization, a need was created to make a guideline for an easier, clearer, and useful financial reporting system. For this purpose, the Financial Accounting Standards Board (FASB) created the Accounting Standards Codification that was launched on July 1, 2009, for interim and financial reporting after September 15, 2009. The Financial Accounting Standards Board (FASB) codification system or Accounting Standards Codification (ASC) is a system that compiles all general accepted accounting principles (GAAP) to be used in the United States for public financial reporting. The FASB’s codification system is a database and research system created to compile all the accounting standards and resources into a single, easier to understand and research list of contents. The main purpose of the Accounting Standards Codification (ASC) or the FASB Codification System is to make a guide of accounting principles and regulations, and compile them into an easier to navigate, research, and reference list. By only having a single system of rules to follow, a lot of confusion and extra research and/or work is saved, instead of having an overload of different and separated guidelines and principles where to choose from. The FASB Codification System is divided into nine areas, which in turn are divided into topics, which then are divided into subtopics, and...
Words: 502 - Pages: 3
...E Matos FASB Codification ACCT 525 Professor Dorothy Brandt Week 3 Abstract The Financial Accounting Standard Board (FASB) was created in 1973 with the purpose of the board is to (according with FASB) establish standards of financial accounting that govern the preparation of financial reports by nongovernmental entities. Those standards are officially recognized as authoritative by the Securities and Exchange Commission (SEC) (Financial Reporting Release No. 1, Section 101, and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). FASB Accounting Standards Codification (Accounting Standards Codification) which represents the source of authoritative standards of accounting and reporting, other than those issued by the SEC, recognized by the FASB to be applied by nongovernmental entities. Some of those standards are; ASC 830-230-55-1 - Statement of Cash Flows for Manufacturing Entity with Foreign Operations, ASC 926-330-35-1 - Products Held for Sale, ASC 954-440-25-2 - Continuing Care Retirement Community, ASC 505-20-50-1 – Equity, Stock Dividends and Stock Split and Disclosure, ASC 710-10-05-6 - Compensated Absences. FASB Accounting Standards Codification (Accounting Standards Codification) which represents the source of authoritative standards of accounting and reporting, other...
Words: 1213 - Pages: 5
...The financial accounting standards board (FASB) has developed a research tool to assist people in finding the correct guidelines and generally accepted accounting principles (GAAP) that apply to companies not ran by the government. [ (multiple, FASB Accounting Standards Codification, 2009) ] The Codification is to give up to date releases of standard-setting activity, ensure accurate codified material, and simply access of all authoritative US GAAP into one centralized location. The Codification does not have standards for state and local governments just standards set by the FASB, EIT, APB and AICPA to name a few standard setters. The SEC is included in the Codification standards, but just the technical information and not the entire rules, regulations or interpretive releases. Grandfathered content is excluded from the Codification. This would include information about pensions, business combinations and income taxes. The Codification is broken down into five main sections with multiple subsections. These sections are topics, subtopics, section, paragraphs, and subparagraphs. This use of a well organized approach to sorting and combining accounting standards and literature has made the Codification a primary resource for entities and other users alike. Comprehensive income is defined as “the change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during...
Words: 1819 - Pages: 8
...FASB Codification Project The Financial Accounting Standards Board, FASB, was implemented in 1973 in the private sector. It was meant to set up the standards for which financial accounting should operate. Its duty was to establish and improve the standards of financial accounting and reporting the financial matters to the general public as well as guiding and educating them. It also helps the auditors, issuers, and users who benefit from financial information. The FASB codification process includes all the accounting values issued by a standard setter. The standard setter is in the levels ‘A’ right through ‘D’ of the present US Generally Accepted Accounting Principles, GAAP, ladder. Also included is the American Institute of Certified Public Accountants, AICPA, and the Emerging Issues Task Force, EITF (FASB, 1984). The codification process involves the assigning of numbers or letters to documents to enable faster access to those documents as well as their retrieval. The FASB codification project will allow thousands of declarations currently in US GAAP to be organized into about 90 accounting subjects. Contents in every subject are then subdivided into subtopics followed by sections and lastly paragraphs. The paragraph is the sole part that contains the important material. The other higher levels are there to help in arranging the contents of the paragraph. A number is allocated to particular contents in each level (Smith 2005). Then the levels are displayed suitably using...
Words: 1293 - Pages: 6
...Intermediate Accounting 1 -- Spring 2014 Financial Accounting Standards Codification Research Assignment Questions In order to complete this assignment, you will need to access the Financial Accounting Standards Board (FASB) Financial Accounting Standards Codification database. The related information for this is posted on Blackboard for this course. The UH copy of the FASB Financial Accounting Standards Codification (FASC) can be accessed at: http://aaahq.org/ascLogin.cfm. The FASC is the one and only source of the technical GAAP standards. Other sources are no longer accepted as GAAP. The student log in information is: Username: AAA51654 / Password: xY8Z67e. After you sign in – click on “FASB Accounting Standards Codification” on the screen and the database will open. There is a “search” box in the top right of the screen. If you scroll over the topics (Assets, Liabilities etc.) on the left side of the welcome page you will see the subtopics and contents – click on the subtopic and it will take you to the related Codification content. The class assignment/project that you are responsible for is comprised of researching several of the more current technical topics in accounting and responding to several specific related technical standard questions about the topics. For some of the topics (see below) you will also be asked and responsible for interpreting how the technical standard is applied or what the objective(s) of the related GAAP rules are attempting to address or other...
Words: 1323 - Pages: 6
...The FASB Accounting Standards Codification® is an advanced application that allows users to access the authoritative content, perform research, and submit feedback. System features provide utilities to view content in many different ways such as browsing by Topic, joining related content, and searching. The FASB Accounting Standards Codification® is an advanced application that allows users to access the authoritative content, perform research, and submit feedback. System features provide utilities to view content in many different ways such as browsing by Topic, joining related content, and searching. The FASB Accounting Standards Codification® is an advanced application that allows users to access the authoritative content, perform research, and submit feedback. System features provide utilities to view content in many different ways such as browsing by Topic, joining related content, and searching. The FASB Accounting Standards Codification® is an advanced application that allows users to access the authoritative content, perform research, and submit feedback. System features provide utilities to view content in many different ways such as browsing by Topic, joining related content, and searching. The FASB Accounting Standards Codification® is an advanced application that allows users to access the authoritative content, perform research, and submit feedback. System features provide utilities to view content in many different ways such as browsing by Topic, joining related...
Words: 259 - Pages: 2
...Accounting Standards Codification Previously, the documents that detailed the rules and regulations of the Generally Accepted Accounting Principles (GAAP) varied in structure, format, and completeness. These variations led to confusion among users and it became more difficult to determine if they were using GAAP correctly. In response to this problem, the FASB developed the Accounting Standards Codification (ASC) whose main purpose is to provide users access to all of the generally accepted accounting principles in one place. The Codification eliminates obsolete information and presents all of the material in the same format and structure. The Codification is now considered the authoritative source for GAAP for all nongovernmental entities. The FASB implemented the Codification with multiple intentions and goals for the new system. The three primary goals included: providing user access to all authoritative US GAAP in one location, guaranteeing that all codified content is an accurate representation of US GAAP, and developing a new research system that continuously updates results of the standard-setting activity. In order to simplify user access to the authoritative US GAAP there needed to be structural changes; this included switching the original standards-based model, which consisted of thousands of individual standards, to a topically based model that comprises of 90 topics. To ensure that all codified standards were accurately represented, the FASB implemented multiple...
Words: 836 - Pages: 4
...The Financial Accounting Standards Board Accounting Standards Codification (also known as “the Codification”) was created by the Financial Accounting Standards Board (FASB) to provide users of U.S. generally accepted accounting principles (GAAP) one place to access authoritative literature on GAAP. The FASB also developed the Financial Accounting Standards Board Codification Research System (CRS). “CRS is an online real-time database that provides easy access to the Codification. The Codification and the related CRS provide a topically organized structure, subdivided into topic, subtopics, sections, and paragraphs, using a numerical index system.” (Kieso, Weygandt, & Warfield, 2010, p 14) CRS can be used to research GAAP information such as accounting policies, comprehensive income, net income, other comprehensive income, and reclassification adjustments. Definitions of accounting policies can be found in two ways on CRS website, asc.fasb.org/home. Definitions can be found in the Master Glossary. The link to the Master Glossary is the last entry in the far left column. Definitions can also be found in the Glossary link under each specific topic. For example, comprehensive income is defined as: The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. CRS...
Words: 835 - Pages: 4
...The Financial Accounting Standards Board (FASB) established a codification system to provide a single source of information for accounting standards. Before, pronouncements from standard setters were separate and time consuming to research. The FASB ASC is a searchable database that significantly reduces the amount of time it takes to find and research pronouncements from the FASB, Emerging Issues Task Force (EITF), Accounting Standards Executive Committee (AcSEC), Accounting Principles Board (APB), level A-D GAAP, and relevant portions issued by the Securities and Exchange Commission (American Accounting Association, n.d.). This database has 90 topics covering thousands of pronouncements. Its purpose is to more efficiently organize accounting principles issued by standard setters. The site is constantly updated to reflect the latest standards so the accountant is assured of the most recent information. The FASB ASC is also intended to reduce the gap between FASB and international accounting standards (HubPages, 2012). The codification system consists of eight content areas. The first topic, Presentation, include 15 categories of information. The first five discusses the presentation of financial statements, balance sheets, statements of shareholders equity, comprehensive income, and income statements (Accounting Standards Codification, 2012). The second category is Assets. The assets section has nine categories with the first three discussing the handling...
Words: 483 - Pages: 2
...Using the FASB Codification of Accounting Standards The Financial Accounting Standards Board (FASB) Codification of Accounting Standards is the current single source of the United States Generally Accepted Accounting Principles (GAAP). The Codification of Accounting Standards is a database and research system created by the Financial Accounting Standards Board that combines many of the authoritative resources about accounting standards into one searchable system. Some of the people who would use the Codification are accounting and reporting professionals, financial analysts, and investors. The FASB Codification allows users to easily search and navigate the content, cutting back on research time and making access to information quicker and more efficient. It was created with the goal to simplify user access to all authoritative U.S. GAAP, reduce the amount of time and effort required to solve an accounting research issue, mitigate the risk of noncompliance, and provide real-time updates as new standards are released. The FASB Codification includes all level A through D generally accepted accounting principles (GAAP) issued by a standard setter and pronouncements issued by the FASB, the Emerging Issues Task Force (EITF), Accounting Standards Executive Committee (AcSEC), Accounting Principles Board, and relevant portion of authoritative content issued by the Securities and Exchange Commission (SEC). The Codification reorganizes the thousands of U.S. GAAP...
Words: 2128 - Pages: 9
...2009, the Accounting Standards Codification (ASC) became effective causing all previous GAAP literature to become nonauthoritative. The ASC was constructed to simplify and reduce the time required to perform accounting research. It is accessible to subscribers at https//.asc.fasb.org and provides a one stop shop for authoritative GAAP related material. It was many years in the making and made possible by contributions from hundreds of accounting professionals working towards the main goal of streamlining accounting research. Below you will find information about what the Codification is, its goals and purpose, and how affected parties will benefit. Ultimately, after reviewing this information you will gain insight into main topic areas and a better overall understanding of the Codification. First, what is the Accounting Standards Codification (ASC)? The ASC, cited as the FASB Accounting Standards Codification® (Codification), is a subscriber based website which provides useful tools for researching authoritative GAAP related material. It was made authoritative by SFAS 168, The FASB Accounting Standards Codification™ and the Hierarchy of Generally Accepted Accounting Principles. The intent is to make available an up to date research system that makes researching accounting standards easy and efficient. The website database offers a tutorial for researching standards, as well as many additional features such as auto population of related topics to assist with accounting research...
Words: 1307 - Pages: 6
