... predominated in Europe, with numerous Frenchmodifications, some of which were based on the Germanic law that had been in effect in northern France. The code draws upon the Institutesof the Roman Corpus Juris Civilis for its categories of the civil law: property rights, such as licenses; the acquisition of property, such astrusts; and personal status, such as legitimacy of birth. One century later, after many new codes have been promulgated throughout the world, and while the movement of law reform is still accelerating, for a number of well-known reasons : establishment of a new international order, trend towards modernization in many countries, etc., the moment seems appropriate to wonder how influential Napoleon’s Code is on the codifications which are taking place now. Of course, we shall consider this Code, not as it was in 1804, but in its present state, after two centuries of legislative additions and...
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...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...
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...Brooke Codification Research Paper Acc 303 11/15/2011 Introduction This paper is an analysis of the FASB Accounting Standards Codification and the Research System available through the AAA/FASB website. It will walk the reader through a select few topics focusing on how the codification literature addresses each topic. The first topic analyzed will be the definition of accounting policies. The paper will go on to discuss information available on comprehensive income, as well as net income. Comprehensive income and net income will also be compared and contrasted, with an example to illustrate each. Accounting Policies, as defined in the Codification literature Topic 235, Section 10 of the codification states, “The accounting policies of an entity are the specific accounting principles and the methods of applying those principles that are judged by the management of the entity to be the most appropriate in the circumstances to present fairly financial position, cash flows, and results of operations in accordance with generally accepted accounting principles (GAAP) and that, accordingly, have been adopted for preparing the financial statements.” The FASB codification, when put in place in 2009, redefined many of the internal accounting policies already in place within business entities. Fortunately for many companies, the codification offers a research system to search these new policies. There is also an extensive cross-reference feature which allows users to...
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...Zach Salvia Professional Research Case #1 Materiality is a company specific aspect of the Generally Accepted Accounting Principle’s and is one of the most important things to keep track of for both business leaders and people invested in the company. Information that is obtained must be relevant and substantial to the company. If missing out on these certain types of information it could influence investors and business leaders decisions based on the reported financial information. To be material, the information has to make a difference to someone, somewhere along the line. As reported in an article in FASB, “That paragraph establishes that in determining materiality, extraordinary items shall be related to the estimated income for the full fiscal year.” If some number is going to influence a decision, it has to be recorded and presented. One guideline is assessing data that could be materialistic is relative size and importance. Companies have to look at all different aspects of their business as a whole; they cannot just focus on one part. So they must compare gains and losses from one part of the company to another. If one number is not significant enough compared to another, it is considered immaterial and is usually not recorded because it will not make a difference to decision makers. Usually the rule of thumb for companies is anything under 5% of net income is considered immaterial. Another guideline that must be followed is to exercise good judgment and professional...
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...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...
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... Fall 2014 Acc 310 Codification Exercise As we have discussed, the Accounting Standards Codification (ASC) is a relatively recent addition to an accounting professional’s toolkit. You will access and employ this platform as a normal part of your studies and in the profession in the days ahead. This assignment is intended to help you to become familiar with this important new platform and to enable you to become better aware of the recent “Revenue Recognition” standard that was discussed briefly earlier in the semester. As a professional on the job, your firm will pay big $$$ for a subscription to the Professional View. Rider has paid for your ability as student to use the information below to access the Codification website: http://aaahq.org/ascLogin.cfm Use the following user name and password: User ID AAA51248 Password s33UYhH This assignment is designed to provide you with a baseline familiarity with the ASC and the terminology associated with the new Revenue Recognition pronouncement. Required: 1. Access the ASC with the user name/password information above and click on the “Help” link for the site. Explore the suggested strategies that may be employed for “searching” ASC content. Describe more specifically how information in the ASC may be identified and retrieved through the use of “Codification Reference” terminology. Starting with the term “Topic,” identify as well the categories...
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...ACCT 525 Week 3 Assignment Codification Summaries Access the codification database through your course shell and give a summary (1 paragraph) of each of the below references: a) ASC 830-230-55-1: This reference shows how to account and format cash flows when a company has subsidiaries operating in foreign countries. Examples are given of a consolidated cash flow statement from a US based company and its two subsidiary companies. The reference explains how excess cash should be disclosed. A majority of the reference deals with the local currency and how it should be shown within the parent company, which in this case a US company based on the dollar therefore both foreign companies would need to be formatted with both local and US. b) ASC 926-330-35-1: This references how an entity, at each balance sheet date, is to evaluate their inventory at the end of that period; items that are in inventory and that the business is going to be selling to clients. The inventory can be evaluated at the net realizable value, meaning the sale of the product minus the cost associated with it. c) ASC 954-440-25-2: This references how a continuing care facility may attain losses when calculating their cost to its clients. These care facilities are required to show annual their future facility and service cost. They do this to see if there will be any liability that needs to be recognized. d) ASC 505-20-50-1: This references how stock dividends should be described to the...
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...Accounting 3366 (a) When did the FASC Codification become effective? The FASC Codification actually became effective on July 1, 2009. (b) Did the FASC change prior GAAP? No, it actually did not. However, it did re-structure GAAP. (c) What does the FASB expect from the new FASC structure and system? 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. (d) What are the “topics” used in the ASC? There are six topics: 1. The General Principles Area (Topic Codes 105–199) relates to broad conceptual matters. 2. The Presentation Area (Topic Codes 205–299) addresses how information is presented in the financial statements. It does not address other aspects of financial accounting such as recognition, measurement, or derecognition for individual financial statement accounts. 3. The Assets, Liabilities, and Equity Areas (Topic Codes 305–399, 405–499, and 505–599, respectively)...
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...Question 2 (a)The authoritative literature that address disclosure of information about capital structure is contained in the Statement of Financial Accounting Standard No. 129 and FASB Codification 505-10-50-3. (b) (2) Participation Right is contractual right of security holders to receive dividends or returns from security issuers profits, cash flows or returns on investments. (c) FASB has an elaborate guardlines on how entities shall report or disclose information concerning securities and are mostly located in FASB Codification 505-10-50-2 through S50-9. 50-3 An entity shall explain, in summary form within its financial statements, the pertinent rights and privileges of the various securities outstanding. Examples of information that shall be disclosed are dividend and liquidation preferences, participation right, call prices and dates, conversion or exercise prices or rates and pertinent dates, sinking-fund requirements, unusual voting rights, and significant terms of contracts to issue additional shares. An entity shall disclose within its financial statements the number of shares issued upon conversion, exercise, or satisfaction of required conditions during at least the most recent annual fiscal period and any subsequent interim period presented. 50-4 An entity that issues preferred stock[->0] (or other senior stock) that has a preference in involuntary liquidation considerably in excess of the par or stated value of the shares shall disclose the liquidation...
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...Accounting Standards is designed to assist firms in establishing a set of consistent and practical criteria by which to recognize revenue. The Revenue Recognition Principle dictates that revenue ought to be recognized when it is realizable and when it is earned. In the case of the transaction between Eye Vision Inc. and Holland Hospital, there are two distinct transactions, the transaction involving the sale of the equipment and the transaction involving the maintenance service. The first transaction is straightforward and the revenue is immediately earned and recognized after the sale. The second transaction, on the other hand, is not so straightforward and requires some accounting guidance. According to the FASB Accounting Standards Codification 605-20-25-3, the revenue resulting from Eye Vision Inc. and Holland Hospital’s contract detailing the two-year maintenance service should be recognized over the two year period in which the maintenance services are to be performed because the Hospital elected to purchase the optional distinctly priced service agreement. Succinctly put, the revenue from separately priced equipment and service contract will be postponed and recognized as income on a straight-line basis. This should be the case unless sufficient historical evidence suggests that the cost of performing the services are acquired in a method other than a straight-line basis in which case revenue should be recognized in equivalent ratios as the incurrence of...
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...FASB Codification Research Project #1 (a) Briefly describe how pension gains and losses are accounted for. According to FASB ASC 715-30-35: 35-21 Gains and Losses Gains and losses that are not recognized immediately as a component of net periodic pension cost shall be recognized as increases or decreases in other comprehensive income as they arise. Accounting for plan terminations and curtailments and other circumstances in which recognition of gains and losses as a component of net periodic pension cost might not be delayed is addressed in the Settlements, Curtailments, and Terminations Subsection of this Section. (b) Explain the rationale behind the accounting method described in part (a). According to FASB ASC 715-30-35 35-22 Gains and Losses Asset gains and losses are differences between the actual return on plan assets during a period and the expected return on plan assets for that period. Asset gains and losses include both changes reflected in the market-related value of plan assets and changes not yet reflected in the market-related value (that is, the difference between the fair value of assets and the market-related value). Gains or losses on transferable securities issued by the employer and included in plan assets are also included in asset gains and losses. Asset gains and losses not yet reflected in market-related value are not required to be amortized under paragraphs 715-30-35-24 through 35-25. 35-23 Gains and Losses In...
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...CODIFICATION OF NIGERIAN ENGLISH: ISSUES IN EMPIRICAL LINGUISTICS Alexandra Uzoaku Esimaje Department of English Studies, Benson Idahosa University, Benin city Email: alexandra.esimaje@live.com ABSTRACT In the English speaking world where English is either a second or foreign language, the emergence of new forms of the language is a proven socio-linguistic reality of language contact. This results from the needs of the host environment both to communicate to the foreigners and to one another now in the new tongue. Hence, in all cases the merging of two languages, cultures and traditions leads to varieties of the language as was the case with English and the many indigenous languages in Nigeria. So it is not in doubt that forms of English which are dissimilar in differing respects from British English exist in Nigeria. What is in doubt is whether each form qualifies as a variety and if any one of them can as yet emerge as the standard variety. This paper argues that English use in Nigeria needs to undergo some stages of development and description before a confident statement can be made as to whether a Nigerian English variety comparable to the British or American Standard English exists. Codification is one such step but prior to it must come a compilation of an extensive database of English language use in Nigeria and the application of empirical methods in examining and determining the character of English in the Nigerian context so that the continuum of forms of the...
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...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...
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...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 ................................
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...Case Study: FASB Codification Case Question 1: Access the FASB Codification and prepare responses to the following questions, providing Codification references as support for your answers. Access the glossary and give the definition for: Answer: A. Firm Fixed-Price Contract – A Fixed Price Contract is essentially a contract where an adjustment can’t be made because of the cost experience of the contractor or his or her performance under the contract. (FASB, 2012). So in another words, the price quoted is the final price—no extra hidden charges or fees can be added. B. Amortized Cost – Amortized Cost is where the sum of the initial investment minus the cash collected then minus the write-downs plus yield accreted to date. (FASB, 2012). So in another words, an Amortized Cost for a company, for example, is the cost of an asset that is written off as an asset that has depreciated in value. It represents the total accumulated depreciation, and thus the totally amortization, to date. C. Impairment – Impairment is the situation where an asset carries an amount that exceeds it fair market value. (FASB, 2012). So in another words, impairment is when an asset with a long lifespan is overpriced. Question 2: Are there SEC documents as a part of this Codification? If yes, where are they located? A. Was unable to locate any SEC documents for this Codification. B. Yes there are SEC documents as part of this codification, entitled Rule 2a-7 under the Investment...
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