FASB Codification System
The purpose of this document is to become acquainted about FASB Codification System. It is necessary to include what is the FASB Codification System, what is the purpose of the system, what are the nine content areas located in the system, and what types of items are located under each content area.
FASB Codification System is a database and research system developed by the Financial Accounting Standards Board that pulls together many of the authoritative resources about accounting standards into a single, searchable system. The purpose of this system is to better organize accounting principles and laws to simplify user access. The nine content areas located in the system include Presentation, Assets, Liabilities, Equity, Revenue, Expenses, Broad Transactions, and Industry. Presentations offers guidance on income statement preparation, notes to financial statements, and for calculating earnings per share. The Assets section contains information on accounting for receivables, investments, and inventory. Liabilities section contains assets retirement and environmental obligations, contingencies, and distinguishing liabilities from equity, and accounting professionals. The Equity section discusses status, recognition, and SEC materials needed to record equity-based payments to non-employees. The Revenue area guide accounting professionals on revenue recognition and updates to accounting standards that affect revenue recognition. Expenses describes procedures used to report compensation, including stock compensation, research and development, and for preparing income taxes. The Broad Transaction area contains information on business combinations, consolidation, fair value measurements and disclosures, financial instruments, and leases. Finally, the Industry area shows the user data related to specific industries, including oil and gas, broker and dealers, and depository and lending.
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