Basic Theory

Question 1

What is ASC

Answer 1

Accounting Standards Codification

Question 2

What did the ASC replace?

Answer 2

Previously issued non-SEC accounting literature

Question 3

What didn’t the ASC change?

Answer 3

GASSP - it merely restructured the existing accounting standards to provide one cohesive set of accounting standards.

Question 4

What is FASB?

Answer 4

Financial Accounting Standards Board

Question 5

What does FASB do?

Answer 5

Produces ASU’s (Accounting Standard Updates) for the Codification

Question 6

What does FASB issue?

Answer 6

Concept statements to develop a theoretical framework.

Question 7

How many concept statements has FASB issued?

Answer 7

As of 2011 - 8. They’re to develop a frame of reference

Question 8

What is the purpose of the concept statements?

Answer 8

Set forth objectives and fundamental concepts that will be the basis for development of financial accounting and reporting guidance

Question 9

Which concept standards were superseded?

Answer 9

SFAC 1 and 2 by 8; SFAC 3 by 6