Fasb Essay

556 WordsAug 6, 20133 Pages
FASB Codification System Orientation Paper The FASB codification system recognizes the thousands of GAAP pronouncements and classifies them into accounting topics and creates a consistent structure for the principles to be displayed. The Codification system is the single source of authoritative nongovernmental U.S. generally accepted accounting principles. This paper will identify what the FASB Codification system is and the purpose of the system. Also the nine content areas of the codification system and what can be found in each content area. The FASB codification system provides a simple way for accounting professionals to access authoritative accounting standards. The FASB codification system is an advanced application that allows users to access the authoritative content, perform research, and submit feedback. It allows accounting professionals to research standards by providing utilities to view content by browsing by topic, joining related content, and reducing the amount of time to research information (FASB Accounting Standards Codification , 2013). The codification system also includes any relevant SEC guidance that is found in separate sections of the codification system. Any accounting literature that is not found in the codification system is considered non-authoritative. The FASB codification system does not change GAAP, but is intended to provide structure that is organized and can be easily accessed for online searches to find accounting standards. Next the nine content areas locate on the FASB Codification system are General Principles, Presentation, Assets, Liabilities, Equity, Revenue, Expenses, Broad Transactions, and Industry. Under General Principles it contains generally accepted principles and information on how the GAAP works in accordance with the FASB codification system. Presentation content includes 15 different items from

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