4-FA Standards Codification

Question 1

What are the goals of codification?

Answer 1

1. Simplify the structure and accessibility of authoritative GAAP;
2. Provide all authoritative literature in a single location;
3. Reduce the time and effort required to research an accounting issue;
4. Reduce the risk of noncompliance with GAAP;
5. Facilitate updating of accounting standards;
6. Assist the FASB with research and convergence (IFRS) efforts.

Question 2

How many ways of researching the issue does the Codification provide?

Answer 2

a. Browse the structure in the menu provided;
b. Search by key word(s); this mode allows narrowing of a search both by related term and by major area within the Codification structure;
c. Enter the specific Codification location (using the numerical system within the Codification); this is designed for users who know their topic and section of interest;
d. Search by previous GAAP standard number (e.g., by FAS 13).