FASB Codification Project
Intermediate Accounting Research Assignment Questions
Directions: Type your answer starting on the line after each question.
1. FASB Accounting Standards Codification FASC
a. When did the FASC Codification become effective?
According to the Notice to Constituents (v4.7), the FASC Codification 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?
According to the Notice to Constituents (v4.7), the FASC superseded all previous level (a)-(d) US GAAP (refers to the previous accounting hierarchy) standards by a standard setter. This means that all other accounting literature not included in the Codification is non-authoritative.
c. What does the FASB expect from the new FASC structure and system?
According to the Notice to Constituents (v4.7), the FASB expects the new FASC structure and system to reduce the amount of time and effort required to solve an accounting research issue, mitigate the risk of noncompliance through improved usability of the literature, provide accurate information with real-time updates as Accounting Standards Updates are released, and assist the FASB with the research and convergence efforts, among other things.
d. What are the “topics” used in the ASC?
According to the Notice to Constituents (v4.7), the “topics” used in the ASC includes General Principles (Topic Codes 105-199), Presentation (Topic Codes 205-299), Assets (Topic Codes 305-399), Liabilities (Topic Codes 405-499), Equity (Topic Codes 505-599), Revenue (Topic Codes 605-699), Expenses (Topic Codes 705-799), Broad Transactions (Topic Codes 805-899), and Industry (Topic Codes 905-999).
e. Are SEC references included in the ASC?
SEC references are included in the ASC. According to the Notice to Constituents (v4.7), the ASC has included relevant portions of authoritative content issued by the SEC and selected SEC staff interpretations and administrative guidance for reference,
Directions: Type your answer starting on the line after each question.
1. FASB Accounting Standards Codification FASC
a. When did the FASC Codification become effective?
According to the Notice to Constituents (v4.7), the FASC Codification 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?
According to the Notice to Constituents (v4.7), the FASC superseded all previous level (a)-(d) US GAAP (refers to the previous accounting hierarchy) standards by a standard setter. This means that all other accounting literature not included in the Codification is non-authoritative.
c. What does the FASB expect from the new FASC structure and system?
According to the Notice to Constituents (v4.7), the FASB expects the new FASC structure and system to reduce the amount of time and effort required to solve an accounting research issue, mitigate the risk of noncompliance through improved usability of the literature, provide accurate information with real-time updates as Accounting Standards Updates are released, and assist the FASB with the research and convergence efforts, among other things.
d. What are the “topics” used in the ASC?
According to the Notice to Constituents (v4.7), the “topics” used in the ASC includes General Principles (Topic Codes 105-199), Presentation (Topic Codes 205-299), Assets (Topic Codes 305-399), Liabilities (Topic Codes 405-499), Equity (Topic Codes 505-599), Revenue (Topic Codes 605-699), Expenses (Topic Codes 705-799), Broad Transactions (Topic Codes 805-899), and Industry (Topic Codes 905-999).
e. Are SEC references included in the ASC?
SEC references are included in the ASC. According to the Notice to Constituents (v4.7), the ASC has included relevant portions of authoritative content issued by the SEC and selected SEC staff interpretations and administrative guidance for reference,