What is the Accounting Standards Codification?
In US accounting practices, the Accounting Standards Codification is the current single source of United States Generally Accepted Accounting Principles (GAAP). It is maintained by the Financial Accounting Standards Board (FASB).
When was the Financial Accounting Foundation codification project approved?
The project was approved in September 2004 by the Trustees of the Financial Accounting Foundation. All users must register to view any codification information. The codification allows a free basic view or paid professional view to the public.
What is the professional view of the FASB Accounting Standards Codification?
The Professional View of the FASB Accounting Standards Codification® is available to accounting program faculty and students through the Academic Accounting Access program administered by the American Accounting Association (AAA). A nominal fee is assessed to academic institutions by the AAA.
How did the codification of GAAP change GAAP?
The Codification did not change GAAP, but it introduced a new structure, organized in an easily accessible, user-friendly online research system.
When was ASC created?
The Accounting Standards Committee (ASC) duties included developing standards for financial reporting and accounting, recording these standards and communicating them through press releases and publications. It existed between 1976 and 1990 when its duties were assumed by the Accounting Standards Board (ASB).
When did FAS 109 become effective?
Dec 12, 1992SFAS 109, which was released by the Financial Accounting Standards Board (FASB) in early 1992, supersedes the widely criticized SFAS 96 and becomes effective after Dec 12, 1992. SFAS 109 allows a deferred tax asset to be recognized if the tax benefit is to be obtained at a later date.
Why was the FASB Codification created?
The primary purpose of the Codification was to mitigate the difficulty of locating, understanding and applying the various levels of hierarchy of GAAP that were issued by numerous standard setting bodies over the years. The FASB believes these difficulties may have resulted in the incorrect application of GAAP.
What year was FASB Codification?
2009As discussed in the section titled Content Matters, the authoritative version of the Codification released on July 1, 2009, includes all level (a)-(d) US GAAP standards issued by a standard setter.
What is FAS 109 called now?
Generally, accounting for income taxes is governed by FAS 109 (now Accounting Standards Codification 740 — ASC-740), which uses the liability method of accounting.
What is SFAS 109?
The Statement of Financial Accounting Standards (SFAS) 109, Accounting for Income Taxes, serves as the bridge between financial and income tax accounting. With numerous tax laws and their almost continuous revisions and updates, calculating and reporting an annual income tax provision has never been more challenging.
What is Codification Why is Codification important to accounting research?
The codification simplifies the classification of accounting standards by restructuring all authoritative U.S. GAAP for nongovernmental entities into one online database under a common referencing system. The codification is a first step in organizing U.S. accounting standards for convergence with IFRS.
Did ASC replace FASB?
The FASB ASC replaced all previously existing financial accounting standards (other than U.S. Securities and Exchange Commission pronouncements) to become the single source of authoritative nongovernmental U.S. generally accepted accounting principles (GAAP).
Why is Codification important to accounting research?
FASB expects that the codification will help mitigate the risk of noncompliance with accounting standards, provide real time updates as standards change and reduce the amount of time and effort required to research accounting issues.
What are the FASB Codification of accounting standards?
The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. The Codification is effective for interim and annual periods ending after September 15, 2009.
What is US GAAP Codification?
The Codification is the single source of authoritative nongovernmental U.S. generally accepted accounting principles (US GAAP). The Codification is effective for interim and annual periods ending after September 15, 2009. All previous level (a)-(d) US GAAP standards issued by a standard setter are superseded.
Is GAAP and FASB the same?
GAAP is a set of procedures and guidelines used by companies to prepare their financial statements and other accounting disclosures. The standards are prepared by the Financial Accounting Standards Board (FASB), which is an independent non-profit organization.
Overview
FASB accounting standards codification
The codification is effective for interim and annual periods ending after September 15, 2009. All prior accounting standards documents were superseded as described in FASB Statement No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles. Accounting literature not included in the Codification is non-authoritative.
The Codification reorganizes the thousands of U.S. GAAP pronouncements into roughly 90 acco…
Goal
The three primary goals of the codification are "simplify user access by codifying all authoritative U.S. GAAP in one spot, ensure that the codification content accurately represented authoritative U.S. GAAP as of July 1, 2009, and to create a codification research system that is up to date for the released results of standard-setting activity." The codification was made to make accounting standards easier to find through a single data base.
Leading up to the codification process
Before the Codification, accounting standards lacked a consistent and logical structure. For the last 50 years, U.S. GAAP consisted of thousands of standards with multiple standard setters. The old U.S. GAAP were difficult to interpret, and the complexity of the standards made it hard for users to stay up to date. Problems with the old standards increased financial reporting risk and led to inefficiencies that increased cost. The Financial Accounting Standards Advisory Council t…
Public access to codification
All users must register to view any codification information. The codification allows a free basic view or paid professional view to the public. The professional view requires an annual subscription up to $940 depending on concurrent users. Discounts may apply to multiple concurrent users. The codification is used by accounting and reporting professionals, analysts and investors.
See also
• List of FASB pronouncements
External links
• https://asc.fasb.org