Introduction into FASB Codification The FASB Codification is a comprehensive source of GAAP related documents; outlining decisions made by the FASB board charged with setting the Generally Accepted Accounting Principles (Kieso, Weygandt, & Warfield, 2012). The codification system is a web driven database; providing accounting professionals with current decisions on accounting topics. FASB Codification serves as the authoritative work for all GAAP related questions (Kieso, Weygandt, & Warfield, 2012). Purpose of the FASB Codification The FASB Codification was created to provide one place for all authoritative accounting literature (Kieso, Weygandt, & Warfield, 2012). Simplifying the process.
* The FASB Codification System is a computerized system that lets users have access to reliable accounting subjects and users are able to do research and provide FASB feedback. The purpose of the FSAB Codification System is to provide users, such as accounting professionals, analysts, and investors, an easier way to locate accounting standards in a single place. The content of the FASB Codification System includes all levels “A through D” GAAP issued by a standard setter and pronouncements that can be issued by FASB, EITF, AcSEC, the Accounting Principles Board, and relevant portions of authoritative content issued by the SC and selected SEC staff interpretations and administrative guidance (Financial Accounting Standards Board, 2008). The FASB Codification System can be used to make better accounting decisions by giving accounting professionals a user friendly computerized environment to access important accounting information, and by having real-time updates, which will help prevent any risks of noncompliance. browsing by Topic, searching, and Go To navigation; joining sections and combining subsections for viewing user‐selected excerpts; cross reference report and archive to locate and access legacy standards; various print options including Printer‐Friendly utility for viewing source references; archive features for accessing any previous version of the content; glossary term display feature for quickly viewing definitions; What’s New feature for accessing recently issued content; What Links Here feature for identifying content related to a specific paragraph; e-mail feature for sending comments to colleagues; personal annotation feature for keeping notes about selected content; and current
The purpose of the FASB Codification is to allow accounting and reporting professionals access to an online database that makes finding and navigating through authoritative accounting standards simpler and easier. The Codification also gives these professionals the ability to use the information for research purposes and submit feedback. Codification Content Areas and Items The FASB Codification is comprised of nine areas organized by subject. Within each of these areas content is organized in an outline structure by the Codification’s hierarchy (Financial Accounting Standards Board, n.d.). The outline is as follows: Area, topic, subtopic, and section.
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.
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.
Unit 212 – Produce documents in a business environment. Outcome 1: Understand the purpose of producing high quality and attractive documents in a business environment. 1. – Outline different types of documents that may be produced and the different styles that could be used. A document is information that is produced in either a printed or electronic – on screen format, all documents can be produced using standard application packages.
One such goal was to simplify user access by codifying all authoritative U.S. GAAP in one location. Anyone who needs to know the proper procedures or rules that apply to the accounting practices need only to look to the Codification System for current and complete standards. This was another goal of the FASB which was to ensure that the codified content accurately represented authoritative U.S. GAAP as of July 1, 2009 and also that the research system is up to date for the released results of standard setting activities. By offering the Codification it was expected to reduce the amount of time and effort required to solve an accounting research issue. It also reduces the users risk since the presentation of information is complete, up to date, and simple to use (FASB.org, 2013).
GAAP stands for Generally Accepted Accounting Principles. The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. GAAP are imposed on companies so that investors have a minimum level of consistency in the financial statements they use when analyzing companies for investment purposes. GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements.
This position is responsible for implementing and maintaining accounting collection policies and updating process documentation as needed. This position will also be responsible for assuring accounting transactions follow General Accepted Accounting Principles (GAAP). Job responsibilities include (but are not limited to): process documentation, cross training, preparing journal entries, reconciling ledger accounts, posting of cash, foreign tax, royalty processing, analyzing account balances, data validity, sending collections letters and working with/escalating to collection agencies when needed. We are looking for an individual who is able to identify inconsistencies and propose solutions to correct
The nine areas are General Principles, Presentation, Assets, Liabilities, Equity, Revenue, Expenses, Broad Transactions, and Industry. Under General Principles the only item listed is generally accepted accounting principles. Under Presentation the items listed are presentation of financial statements, balance sheet,