FASB Codification System Orientation The FASB Accounting Standards Codification system allows members to view codification content, perform research, and submit feedback. Users can research content by category, joining related content, and searching among them. It was announced in 2004 by FASB that the purpose of the Codification system would be the single source of authoritative nongovernmental U.S. GAAP effective for all interim and annual periods ending after September 15, 2009 (Schroeder, Clark, & Cathey, 2011, Chapter 1: The Development of Accounting Theory). Having all of U.S. GAAP literature in one place eliminates the need to research many different resources to solve an accounting issue. The Codification system can also help mitigate the risk of noncompliance through an improved usability of the literature.
The FASB Statement No. 162, is The Hierarchy of Generally Accepted Accounting Principles, which became effective on November 13, 2008, it identified the sources of accounting principles and the framework for selecting the principles used in preparing the financial statements of nongovernmental entities that are presented in conformity with GAAP. The purpose of Statement 162 was to arrange the sources of GAAP in a hierarchy for users to apply accordingly. Once the Codification is in effect, all of its content will carry the same level of authority, effectively superseding Statement 162. Keywords: Sources of GAAP, Consolidation of Variable Interest Entities, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, and Disclosure of Subsequent Events Week One Homework Assignment The four most recent FASB Accounting Standards Codification amendments will be summarized within this text.
Framework 2: ISO/IEC 27002 Is also an improvement on the framework in that they are not public and an organization must pay for the use of the copyrighted framework. It also provides cyclical guidance to continual assessment by the “Plan, Do, Check, and Act” cycle. Framework 3: ISO/IEC 27011 is a framework based on ISO/IEC 27002 but is more specific to the electromagnetic spectrum and wireless telecommunications. It will more closely meet the needs of the Defence Spectrum Organization. Using each frameworks section summaries an overall hybrid framework can be created that may be best suited for this project.
BOMS: MPS: [pic] 1) When a suggestion is made to adjust a planning item (lot size, safety stock, etc.) a quantity should be suggested. To simply say ‘increase’ or ‘decrease’ could mean 1 or 100 units, 1 or 100%. Managers should make specific recommendations. 2) We can tell from the Bill of Material (BOM) that INP101 is a make item, not purchased, so we are the ‘supplier’.
APA Assignment 2: The Outline In this assignment, you will be constructing an outline that reorganizes an already existing paper. It’s a bit like working backwards, but with the goal of improving the flow of the paper. As the directions state, the Sample Paper is currently organized as a string or series of individual article reviews, which is incorrect. The Sample Paper does little to synthesize the material and support the research proposal being put forth in the Methods section (Week 8 assignment). However, arranging a paper topically—that is, dividing the main thesis into subtopics and supporting details—will lead to a much more convincing paper.
The outline is as follows: Area, topic, subtopic, and section. The nine areas of the Codification and examples of the items that can be found under each area are listed below: 1. General Principles – Generally Accepted Accounting Principles (GAAP) 2. Presentation – Presentation of financial statements, notes to
There are three goals that the FASB has when developing the Codification. The three goals are to simplify user access by having all the authoritative GAAP in one place, to ensure the codified content represented the correct GAAP as of July 1, 2009, and to create a research system that is constantly up to date. The Codification is also expected reduce the time and effort spent on solving accounting issues, reduce the risk of noncompliance, provide accurate and up to date information, and to assist the FASB with research and convergence efforts (FASB, n.d.). Content Areas There are nine different content areas that the FASB has divided the Codification System into in order to facilitate navigation of the system. The nine areas are General Principles, Presentation, Assets, Liabilities, Equity, Revenue, Expenses, Broad Transactions, and Industry.
Statements of Position (SOP) b. Audit and Accounting Guides (AAG)—only incremental accounting guidance c. Practice Bulletins (PB) d. Technical Inquiry Service (TIS)—only for Software Revenue Recognition 5. SEC references included in ASC to enhance the codifications’ utility for public companies: - Regulation S-X - Financial Reporting Releases - Interpretive releases - SEC staff guidance in Staff Accounting Bulletin, EITF topic D and SEC Staff Observer Comments. 1. Period for valuation of Going Concern: IAS 1, or at least but not limited to 12 months from the reporting period’s end.
Business Research Report THE FINDINGS OF A NEW CPA THAT HAS TO REPORT THE STANDARDS OF THE FINANCIAL ACCOUNTING STANDARDS BOARD Western Governors University RWT1 Darin Dunham 000242679 February 12, 2013 Tracia Roberts Table of Contents Introduction………………………………………………………………………………………3 Research Findings………………………………………………………………………………..5 Finding Number 1 (History and Standards of the FASB)…………………………….5 General Analysis 1 (History and Standards of the FASB)……………………………9 Finding Number 2 (Compliance with Internal Management and FASB Standards)……………………………………………………………………………………….10 General Analysis 2 (Compliance with Internal Management and FASB Standards)……………………………………………………………………………………….14 Finding Number 3 (Avoiding Financial Board Scandals)……………………………16 General Analysis 3 (Avoiding Financial Board Scandals)…………………………..18 Recommendation 1 (History and Standards of the FASB)…………………………..19 Recommendation 2 (Compliance with Internal Management and FASB Standards)……………………………………………………………………………………….20 Recommendation 3 (Avoiding Financial Board Scandals)…………………………..22 Executive Summary…………………………………………………………………………….24 Conclusions……………………………………………………………………………………..25 References Introduction This business research report addresses the topic of a CPA of a newly formed, publicly held accounting firm. The CPA has to report the standards of the Financial Accounting Standards Board. The CPA also has to provide a report to their management on the impact that the FASB will have on the company. A newly formed accounting firm must comply with a strict code of ethics and represent the best interests of their clients and maintain the confidence of the public. Accounting firms have a list of responsibilities and duties which include tax advising, preparation, auditing and consulting.
Her attention should be focused on other cost cutting methods. Conclusions have been drawn from the following analysis. Quantitative Analysis: First we have the information which is given in this case study: • Existing pagers = 20 (1 has been bought and does not require monthly fee) • On average 1 warning/malfunction a week • Cost of malfunction for Cottrill Inc. = $200,000 / hour or $3333.33 / minute • Tallant cost for 1 pager = 16.95+1.95+11.90+(60/12)= $35.80 / month • Saxton cost for 1 pager = $13.95 / month Annual cost of choosing Tallant = 35.80x12x19+(35.80-11.90)(since 1’s been bought) = $8187.30 Annual cost of choosing Saxton = 13.95x12x20 = $3348.00 Annual savings if choosing Saxton = 8187.30-3348.00 = $4839.30 We were also presented with the dilemma that they encountered a major problem during trial. Cottrill’s systems group had to reprogram and rework