Financial Accounting Codification

Question 1

Goals of the codification

Answer 1

Codification is sole source of US GAAP for non-governmental entities
1-Simnplify the structure and access of uthoritative GAAP
2.-provide a single location for GAAP
3.-Reduce time and effort in reseach
4.- Reduce the risk of non-compliance with GAAP
5.- Facilitate updating the AS
6.- Assist with BASB recerach and convergence (IFRS)

Question 2

Updating Codification

Answer 2

1.-changes to FASB standrs through ASU
designate cronologically by year exp; ASU 2014-12
2.-ASU incorporated in codification FASB web, are not authoritative
a-Sumarize key aspects of the update
b.-detail de cod change
c.- explains the basis of upd
3.- New guidance shows as Pending text untill effective
4.-codf provides access to org standars
5.- dof provides links enabling users to provide feedback

Question 3

Codification Structure

Answer 3

1. -Overall Structure
2. -Areas=
3. • topics
4. -Suptopics
5. Sections
6. -Subsection
7. -Paragraph

Question 4

codification structure - Areas

Answer 4

a. - General principles (100)
b. -Presentations (200)
c. -Assets (300)
d. -Liablities(400)
e. -Equity(500
f. -Revenue(600)
g. -Expenses(700)
h. -Broad Transt(800) int and subsequent event
g. -Industry (900) special ind acct

Question 5

Topics -Subtopics

Answer 5

There are 90 topics

and 1 subtp for every topic

Question 6

Sections- Subsections

Answer 6

each Suptopic has 16 sections

Subsections are not numbered

Question 7

Paragraphs

Answer 7

1- actual standard provided
2- follw a hierarchical structure
c.- numbers do not change over time-use letter as extension
4.-entities should use verbal ref
5.- standarized terms

Question 8

Industry

Answer 8

Contains only guidance for certain industries

Question 9

researching the codification

Answer 9

1.- Browse the structure
2.- Search by key word
3.- Enter especific codification location
4.- Search by previous GAAP
Information can be combine

Question 10

Codification exclusions

Answer 10

a. - Other comprehensive basis of accounting
b. - Cash basis of accounting
c. - Income tax basis accounting
d. -Regulatory accounting principles (insurance)
e. - Govermental accounting standards