Fasb Codification System Essay

1466 WordsMay 14, 20146 Pages
Week One Homework Assignment Elondra D. Cousin Keller Graduate School of Management Abstract The Objective of this document is to give a summary of the four most recent FASB “Accounting Standards Codification”. FASB Codification system was designed to make the accounting standards easier locate by using one online database under a mutual referencing system. The system organizes the accounting laws and accounting principles to minimize the amount of time accounting professionals have to search to access to these laws and principles. The four most recent standards issued are FASB No. 168, FASB No. 167, FASB No. 166, and FASB No. 165. 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. A description of each Amended Codification Standard will be given. In addition, the impact that it has on the existing authoritative accounting literature. The four most recent issuances refer to Change in Sources of GAAP for Public Companies, Consolidation of Variable Interest Entities, Accounting for Transfers

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