Codification Database Paper
Accounting principles and standards change consistently to adapt to the development of business. It is not easy to notice t changes in accounting principles in time. However, the codification database provides a convenient and effective way for searching and learning the accounting principles. In this training guide, how to use the codification database, what are the updates in revenue recognition and notion of fair value, and where can access the update information in this database will be introduced.
Training Guide
Researching accounting principle can be simple and effective with the FASB Codification database. To access the database, login the user name and the password at the access of the Accounting Standards Codification following the …show more content…
The navigate bar listing on the left of the home page is composed of different areas of accounting, such as assets, revenue and equity. After selecting someone from these areas, and you will see the second hierarchies, the “topic”, such as the “Cash and Cash Equivalents” and “Revenue Recognition”. Generally, in this codification database, the accounting principles are separated into a four-level structure including “Area”, “Topic”, “Subtopic”, and “Section” by category. With this structure, you can find accounting principles step by …show more content…
The update information is listed in a table in this page. Through checking the dates in the right column of this table, it is easy to find the most recent update which is the “Accounting Standards Update No. 2014-09”.
In this update, a new revenue recognition model was created, which provides the regulation for the process of the revenue recognition. Moreover, definitions of the contract and customer was adjusted respectively. This update is also codified in the ASC 606-10, “Revenue from Contracts with Customers”, and it is significant for the task of revenue recognition in future.
Fair Value
After typing the code “820-10-00” into the search box, the update information relevant to the fair value can be found in the table. One of the recent changes is the “Accounting Standards Update No. 2014-13” including the topic of the consolidation. “Topic 810 requires a reporting entity to consolidate a collateralized financing entity if it is the primary beneficiary of that collateralized financing entity” (FASB, 2014). According to this standards update, assets and liabilities of the consolidated collateralized financing entity are required to account at the fair value (FASB,
Training Guide
Researching accounting principle can be simple and effective with the FASB Codification database. To access the database, login the user name and the password at the access of the Accounting Standards Codification following the …show more content…
The navigate bar listing on the left of the home page is composed of different areas of accounting, such as assets, revenue and equity. After selecting someone from these areas, and you will see the second hierarchies, the “topic”, such as the “Cash and Cash Equivalents” and “Revenue Recognition”. Generally, in this codification database, the accounting principles are separated into a four-level structure including “Area”, “Topic”, “Subtopic”, and “Section” by category. With this structure, you can find accounting principles step by …show more content…
The update information is listed in a table in this page. Through checking the dates in the right column of this table, it is easy to find the most recent update which is the “Accounting Standards Update No. 2014-09”.
In this update, a new revenue recognition model was created, which provides the regulation for the process of the revenue recognition. Moreover, definitions of the contract and customer was adjusted respectively. This update is also codified in the ASC 606-10, “Revenue from Contracts with Customers”, and it is significant for the task of revenue recognition in future.
Fair Value
After typing the code “820-10-00” into the search box, the update information relevant to the fair value can be found in the table. One of the recent changes is the “Accounting Standards Update No. 2014-13” including the topic of the consolidation. “Topic 810 requires a reporting entity to consolidate a collateralized financing entity if it is the primary beneficiary of that collateralized financing entity” (FASB, 2014). According to this standards update, assets and liabilities of the consolidated collateralized financing entity are required to account at the fair value (FASB,