Fasb Codification Essay

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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. Additionally, redundant information is left out to streamline the code. Under the direction of the FASB board the codification is kept current; making it relevant for those in the accounting field. Content The FASB Codification is divided into nine main categories. Under each of these categories are lists of articles that shape GAAP decisions related to those topics. This makes researching each topic easier as it provides a firm starting point. General Principles The General Principles tab gives an overview of GAAP. The implementation of GAAP decisions and how they are created are discussed under this header. The objectives of GAAP and the scope of use are also discussed in articles under this heading. Presentation A primary objective of GAAP was the establishing of a standard format to present financial documents to outside investors (Kieso, Weygandt, & Warfield, 2012). Under the presentation header are articles relating to how various accounting documents should be formatted and presented. Timing guidelines are also presented for each of the accounting documents.
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