According to Financial Accounting Foundation (2014), the FASB Accounting Standards codification is "the source of authoritative generally accepted accounting principle (GAAP) recognized by the Financial Accounting Standard Board (FASB) to be applied to nongovernmental entities" (FASB.org, 2014). The codification system allows user to access the authoritative content, do research, and give feedback. The purpose of the FASB Codification system is make clear and easier to locating, understanding and applying the accounting standards through using an online database, which developed and issued the standards over the years. The implementation of codification system reduces the amount of time and effort required to resolve accounting research issues. …show more content…
According to FASB, the Codification System can be used as a research tool to help streamline the research process, and made easy to people for finding accurate accounting information during their research (FASB.org, 2014). With a searchable retrieval system, it helps to eliminate delays and combine the codification, which helps to build the most accurate and reliable financial information. The nine content areas in the FASB Codification System are General principle, Presentation, Assets, Liabilities, Owner’s equity, Income, Expenses, Broad transactions, and Industry. Each of these areas breakdown sub-topics, which depending on the area a company selects for its further clarification (FASB.org, 2015, p. 9). The Codification content is organized by subject matter in a hierarchy of four highest levels, are Area, Topic, Subtopic, and Section. For instance, if the researchers select the area of Presentation, in which they would find sub-topics start with “Presentation of Financial Statements” (FASB.org, 2015, p. 12). Every topic has a unique three-digit identifiable code listed next the title of the topic, if the researcher click on any section number or title in the “table of Contents” outline to navigate to that section’s page (FASB, 2015, p. 6). However, the tools provided in the Codification System makes it easy for users to find and link to reference
FASC wanted to the codification all in one spot and have it easier for users to view. They also wanted the codification to be up to date.
Financial Accounting Standards Board (FASB). Accounting Standards Codification TM. Financial Accounting Standards Board (FASB), 2010. Web. 16 May 2014.
The primary basis for this categorization varies depending on the phase of the project. In addition to the changes in the timing of the internal-use software capitalization, the new standard requires the entity to disclose a general description of the software acquired or developed, the various significant judgements and assumptions applicable, both a qualitative and quantitative description of the costs that were and expensed or capitalized during the period, and a description of the period over which the implementation costs are an expense in the income statement (ASC
The goal of the Codification is to simplify the organization of thousands of authoritative U.S. accounting pronouncements issued by multiple standard-setters. To achieve this goal, the FASB initiated a project to integrate and topically organize all relevant accounting pronouncements issued by the U.S. standard-setters including those of the FASB, the American Institute of Certified Public Accountants (AICPA), and the Emerging Issues Task Force (EITF)
To help accounting professionals easily navigate through 50-plus years of unorganized US generally accepted accounting principles (GAAP) and standards the Trustees of the Financial Accounting Foundation approved the Financial Accounting Standards Board (FASB) Accounting Standards Codification (Codification.) By codifying authoritative US GAAP, FASB will provide users with real-time and accurate information in one location. Concurrently, FASB developed the FASB Codification Research System; a web-based system allowing registered users to electronically research accounting issues. Since 2009, the codification became the single source of nongovernmental authoritative GAAP.
While the Dewey decimal system contains a comprehensive index, the Library of Congress Classification system does not (Taylor 430). Each volume of the LCC schedules contains its own index and these indexes do not refer to one another. Finding subjects in the schedules can be awkward. To locate a topic, one must check through each volume index of all the different disciplines that may ...
It outlines the interconnection of a company’s financial and non-financial elements and aims to combine them and show value creation and maintenance. It identifies resources and their effective and responsible usage. It intends to create a dialogue between the shareholders and other stakeholders and provides them with detailed information.
Private and public accounting has long been discussed and disputed in regards to financial reporting. Since the Financial Accounting Standards Board (FASB) was created in 1973, accountants have called for different accounting regulations for private and public accounting sectors, as private companies do not have the resources to meet the complex requirements of public companies. Private companies currently are not required by law to issue annual or quarterly financial statements (James, 2012). Private companies do, however, have the option to apply the U.S. Generally Accepted Accounting Principles (GAAP), cash basis, or accrual accounting to their financial statements (James, 2012).
One of the most debatable topics in the accounting industry today is the extent in which we should make the financial statements understandable to the general population. The FASB currently gears its reporting standards toward...
AASB, Australian Accounting Standards Board, Statement of Accounting Concepts SAC4 ‘Definition and recognition of the elements of financial stat
The globalization of business has resulted in the need for compatible accounting standards that can be used internationally for financial reporting. As a result, the International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) to unify the various financial reporting methods and create a single accounting standard which can be applied to any financial statement worldwide (Byatt). The global standardization of financial reporting will increase the readability and enhance comparability of globally traded companies’ financial statements, without the need of conversion or translation. There are a few main differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (U.S GAAP). The increasing recognition and acceptance of the International Financial Reporting Standards by accounting professionals in the United States, will affect the way in which the U.S will record financial statements in the future.
The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics.
The Financial Accounting Standards Boards (FASB) defined conceptual framework as a consistent of underlying concepts and the ideas that describe the nature and general purpose of financial reporting which may lead to consistent standard in accounting (Deegan 2010). The role of the conceptual framework is to ensure that financial statements in accounting are free from bias and to provide useful information that is useful for user’s decision making. The standard-setting board also formulated a range of perceptions and theories related to accounting to trigger the objectives of financial reporting. The standard-setting board keeps issuing the conceptual framework over time to ensure that the conceptual framework’s objectives are improving to provide useful financial information. The innovative work on conceptual framework was embraced in the United States by the FASB in the early 1970s. The FASB accomplished disappointment in attempting to generate a standard that at the outset might not appear to present, especially testing theoretical issues. Regardless, while attempting to achieve concession on Statement of Financial Accounting Standard, tending to the theoretical issues produced critical matter for the board members. In this manner, throughout the outset the FASB understood the requirement for an obvious conceptual framework. Based on Hines’s argument, the conceptual framework is mean to provide the ability to increase self-regulate of a profession in order to neutralizing government interference from arising. Whether this argument has been accepted or not will be discussed in more detail with supported evidence to clarify the main point about Hines’s argument. Further details about this argument will discuss below.
There are general rules and concepts that preside over the field of accounting. These general rules, known as basic accounting principles and guidelines, shape the groundwork on which more thorough, complex, and legalistic accounting rules are based. The Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a foundation for their own comprehensive and complete set of accounting rules and standards.
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.