Preview

fasb

Satisfactory Essays
Open Document
Open Document
293 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
fasb
(a) When did the FASC Codification become effective?

The FASC became effective for interim and annual periods ending after September 15, 2009 even though the authoritative version of the Codification was released on July 1, 2009
(b) Did the FASC change prior GAAP?
The FASC did not change prior GAAP but it instead reorganized previous GAAP into a new structure. This new structure is organized into a new research database that is supposed to be user friendly and make finding certain GAAP easier to use.

(c) What does the FASB expect from the new FASC structure and system?
The FASB has high expectations from the new FASC system including reducing the amount of time and effort that is used to solve an accounting research issue. The FASC also expects the Codification to mitigate the risk of noncompliance through easier usability of accounting literature. The Codification is also expected to provide accurate information through real time updates whenever Accounting Standards Updates are released and to assist the FASC with all of the research and convergence efforts

(d) What are the “topics” used in the ASC?

There are six major topics that are used in the ASC. The first one is The General Principles Area which includes broad conceptual matters. The next one is The Presentation Area which shows information is presented in the financial statements. The Assets, Liabilities, and Equity Areas have guidance on all of the balance sheet accounts while the Revenue and Expense Areas have guidance on all of the income statement accounts. The next topic that is used in the ASC is The Broad Transactions Area which deals with some financial statement accounts and is generally transaction based. The final topic used in the ASC is The Industry Area which contains guidance on how to...

You May Also Find These Documents Helpful

  • Good Essays

    Fasb Fra 2

    • 943 Words
    • 4 Pages

    If a transaction is within the scope of specific authoritative literature that provides revenue recognition guidance, that literature should be applied. However, in the absence of authoritative literature addressing a specific arrangement or a specific industry, the staff will consider the existing authoritative accounting standards as well as the broad revenue recognition criteria specified in the FASB's conceptual framework that contain basic guidelines for revenue recognition.…

    • 943 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Fasb System Orientation

    • 740 Words
    • 3 Pages

    The FASB codification system is a database system set-up for the authoritative combination of GAAP to be found in one place. A person does not have to search several sites and accounting board standards to find accounting information. “This site is designed to allow users to offer feedback, perform research, and view site contents” (About the FASB codification system, 2012, p. 1).…

    • 740 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    The FASC did not change prior GAAP but it instead reorganized previous GAAP into a new structure. This new structure is organized into a new research database that is supposed to be user friendly and make finding certain GAAP easier to use.…

    • 954 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting. Those standards govern the preparation of financial statements. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) (Financial Reporting Release No. 1, Section 101, and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). Such standards are important to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information.…

    • 631 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    FASB Codification Project

    • 1365 Words
    • 6 Pages

    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.…

    • 1365 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    The accounting aspect for the annual fee paid by pharmaceutical manufacturers is subject to review by the Emerging Issues Task Force (EITF). The same accounting issue goes for a provision of the new Health Care Act that calls for annual fees to health insurers are to be paid to the federal government. This leads to an issue at hand for the proper treatment of recording the annual fees and what period they should be recorded in. FASB, Financial Accounting Standards Board, is a private organization that establishes GAAP, generally accepted accounting principles, for public companies in the United States. It was created in 1973 by the Security and Exchange Commission (SEC) to replace the Committee on Accounting Procedure (CAP) and the Accounting Principles Board (APB). To help deal with the issue of how to record the annual fee, FASB has issued a…

    • 1925 Words
    • 8 Pages
    Best Essays
  • Better Essays

    Financial Accounting Standards Board (FASB). Accounting Standards Codification TM. Financial Accounting Standards Board (FASB), 2012. Web. 17 April. 2012.…

    • 1157 Words
    • 5 Pages
    Better Essays
  • Good Essays

    The purpose of this paper is to review, compare, and show the contrast between the two accounting standard boards; Governmental Accounting Standards Board (GASB), and the Financial Accounting Standards Board (FASB). The objectives of both Boards will be discussed as well as similarities and differences with each. The topic will then review modified accrual basis of accounting and how it differs from full accrual accounting.…

    • 704 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Memomemomemo

    • 416 Words
    • 2 Pages

    Each group member should review the FASB Accounting Standards Codification® online resource prior to developing responses to the case-related issues. The Codification can be accessed at http://aaahq.org/ascLogin.cfm.The associated username and password are:…

    • 416 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Week 4 Assignment

    • 875 Words
    • 4 Pages

    The FASB and IFRS continually improve upon accounting standards and rulings in an effort to converge GAAP with international standards. In fact, several standard and ruling updates are being contemplated at this moment through pending discussions and through exposure drafts (PWC, 2011-2015); we will review a few of these in the next few paragraphs…

    • 875 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The FASB Codification Systems is a source of principles and standards recognized by the FASB that is applied to nongovernmental entities in the preparation of financial statements in conformity with (GAAP). “Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants” (FASB. n.d.). Generally, the FASB Codification System helps to establish the principles and framework for preparation of financial statements.…

    • 371 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The changes made by the FASB to US GAAP are more fundamental than the changes we have made to IFRSs. Among the more significant of the changes it has made, all of which bring US GAAP into line with existing IFRSs, are:…

    • 517 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Iasb

    • 960 Words
    • 4 Pages

    4.2 which partied stand to gain from the international harmonization of accounting? What are they doing to achieve it?…

    • 960 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Subsequent Events

    • 1188 Words
    • 5 Pages

    The current information about subsequent events under ASC 855 is based upon a Statement of Financial Accounting Standards that was originally released by the Financial Accounting Standards Board in May of 2009. The statement was FAS No. 165, Subsequent Events, and it pertained to financial periods ending after June 14, 2009. It was later codified into ASC 855. On February 24, 2010, the FASB finalized an Accounting Standards Update (ASU 2010-09) after concerns were raised from SEC filers about recognition and disclosure requirements. The current ASC 855 guidance contains the amendments presented in the Accounting Standards Update.…

    • 1188 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    regulatory framework

    • 1466 Words
    • 6 Pages

    Readers will be aware that all EU companies listed on a regulated market will be…

    • 1466 Words
    • 6 Pages
    Powerful Essays