FASB Codification System Orientation Paper
This paper will talk about what the FASB Codification System is, what the purpose of the FASB Codification System is, what the nine content areas located in the FASB Codification System are, and what types of items are located under each content area. What Is
“The Codification is the single source of authoritative nongovernmental U.S. generally accepted accounting principles (US GAAP). The Codification is effective for interim and annual periods ending after September 15, 2009” (FASB Codification System, par. 2, 2009). Any accounting literature that is not included in the Codification is nonauthoritative or nonusuable. “The Codification is the result of a major 5-year project involving more than 200 people from multiple entities. The Codification structure is significantly different from the structure of previous accounting standards” (FASB Codification System, par. 3, 2009). Purpose Of
“The FASB had three primary goals in developing the Codification: 1.
Simplify user access by codifying all authoritative US GAAP in one spot. 2.
Ensure that the codified content accurately represented authoritative US GAAP as of July 1, 2009. 3.
Create a Codification research system that is up to date for the released results of standard-setting activity.” (FASB Codification System, Notice to Constituents, 2009) Nine Content Areas
The nine content areas located in the FASB Codification System are General Principles, Presentation, Assets, Liabilities, Equity, Revenue, Expenses, Broad Transactions, and Industry. A person should be able to find what he or she is looking for under these nine content areas. Types of Items
The nine content areas are broke down into smaller types that are located under each content area. This helps to make it a little easier to find what a person is looking for. General Principles
Presentation of Financial Statements
Statement of Shareholder Equity...
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