This section deals with certain general background considerations and information related to the FASC and the answers can be found by clicking the “About the Codification” and “Notice to Constituents” sections on the FASC Welcome Page. This section is a good general source of information about the FASC and should be reviewed prior to starting to answer the specific questions set forth in all sections. The related research questions that you must answer are:
(a) When did the FASC Codification become effective?
• It was released on July 1, 2009 and became effective for Interim and Annual periods ending after September 15, 2009.
(b) Did the FASC change prior GAAP?
• No it didn’t change, it only got restructured.
(c) What does the FASB expect from the new FASC structure and system?
• The System is expected to reduce the amount of time and effort that is used to solve an accounting research issue.
(d) What are the “topics” used in the ASC?
• The General Principles
• The Presentation
• The Assets
• Broad Transactions
(e) Are Securities and Exchange Commission (SEC) references included in the ASC?
• Yes It is.
2. Transfer of Receivables FASC 860-10
As the new staff person in your company's treasury department, you have been asked to conduct research related to a proposed transfer of receivables. Your supervisor wants the authoritative sources for the following items that are discussed in the securitization agreement.
Access the FASB Codification at http://asc.fasb.org/home to conduct research using the
Codification Research System to prepare responses to the following items. Provide
Codification references for your responses.
(a) Identify relevant Codification section that addresses transfers of receivables.
(b) Provide definitions for the following: (i) Transfer