ipl-logo

FASB Accounting Standards Codification Research Paper

887 Words4 Pages

FASB Accounting Standards Codification Project The FASB Accounting Standards Codification is the source of the authoritative generally accepted accounting principles, which is GAAP, recognized by the FASB to be applied to nongovernmental entities. The Codification is the result of a major 5 years project, including more than 200 people from multiple entities. The FASB developed a codification project which resulted in a key-word searchable data base of the authoritative literature for the US financial reporting. Rationale for the Project The Codification has been approved by FASB in June 2009 as the single official source for the US nongovernmental financial reporting. Then it went effective for the interim and annual periods ending on or after September of 2009. According to the FASB Accounting Standards Codification, about the Codification (v 4.9), the Codification has three primary goals as the rationale for the project. First of all, The Codification aims to simplify the access process for the users to all the authoritative US GAAP in one spot. It is the change from the standards-based model, involving thousands of individual standards, to the topics-based model. As the authorized codification, it covers all levels US GAAP …show more content…

Then it helps users mostly to have the benefit of the newest updated content. The codification structure is significantly different from the structure of the previous standards. The Codification continue to include the authoritative content issued by the SEC, as well as some selected SEC staff interpretations, which helps to improve the usability. Now, with the exception of any SEC or other grandfathered guidance, all other accounting literature not included in the Codification is deemed non-authoritative (based on the PowerPoint: source of DeVry/Becker Educational Development

Show More
Related

FASB Accounting Standards Codification Case Summary

254 Words | 2 Pages

ABC offers separately priced extended warranties for appliances sold that are non-refundable and have no limits to the potential cost of honoring the warranty. Although ABC does track warranty profits and losses by appliance type, assume that no analysis has been performed to determine the rates at which cost are incurred throughout the warranty period. Assuming that manufacturer warranties provide coverage for the appliance for 1 year from the date of purchase, when should revenues and expenses of such warranties be recognized? FASB Accounting Standards Codification (ASC) topic 605-20-25-3 (Revenue Recognition) states that in regard to extended warranties “revenue shall be recognized in income over the period in which the seller is obligated

Read More

Acc 201 Final Project Part 1 Accounting Cycle

1187 Words | 5 Pages

ACC 201 Final Project Part I Accounting Cycle Report Vanessa Ann Williams Southern New Hampshire University The accountant cycle has really impacted me to gain insight on the financial side of Peyton Company. In the accountant cycle, there are many particular directions involve determining the growth of the company such as steps, role, omission and financial statements. It’s important to apply every step from the accountant cycle to make a financial critical decision in the long run. This report will have a breakdown of how to apply the accountant cycle for Peyton Company to be aware of future financial decisions to keep the company holding strong.

Read More

Pension Plans: GASB Vs. FASB

740 Words | 3 Pages

The purpose is “to develop, implement, and establish standards for accounting and financial reporting activities are accurate and reliable, and the resulting financial reports are as accurate and beneficial to the end users.” The end users that are discussed in the purpose are the outside users of the financial statements. Outsider users are……

Read More

Ggb 515 Task 1

789 Words | 4 Pages

As such, governments adhere to a different set of financial reporting and accounting standards. Governmental accounting and financial reporting standards help stakeholders assess how public resources were acquired and how resources are or will be spent. Accounting is a systematic reporting and recording of assets, liabilities, capital, income and expenditure. Because the public sector operates under a different environment then the private sector, government accounting is specific to the functions of the public sector. State and local governments follow the principles and guidelines developed by the Government Accounting Standards Board (GASB).

Read More

Macy's Accounting Principles

185 Words | 1 Pages

The financial data and the information provided in the analysis of the financial situation are following the accounting principles (GAAP). Some other data and results which are not accepted GAAP but related

Read More

Target Corporation Executive Summary

477 Words | 2 Pages

The Target Corporation, NYSE symbol TGT, had revenues in 2015 of $72,618 million. In order for Target to transition from General Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards they will first have to follow the IFRS 1, which is the First Time Adoption of International Financial Reporting Standards. The IFRS 1 is the structure pertinent to those implementing IFRS for the first time (Gornik-Tomaszewski & Sellhorn, 2010). In order to transition from GAAP to IFRS companies need to undertake three steps. Those steps include 1) Selecting an accounting practice that is in compliance with IFRS, 2) Prepare an initial IFRS statement of fiscal position, using the date of transition to IFRS as starting date, and 3) Present and disclose their first set of IFRS financial reports along with an rationalization of the conversion from GAAP to IFRS (Gornik-Tomaszewski & Sellhorn,2010).

Read More

FASB Accounting Standards Codification

1827 Words | 8 Pages

The FASB Accounting Standards Codification (FASB Codification) is the only source of authoritative GAAP apart from SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update to inform people about changes to the FASB Codification, which includes changes to non-authoritative SEC content. In relation to International Financial Reporting Standards (IFRS), after a new IFRS Standard is issued and before it becomes effective, the International Accounting Standards Board (IASB) helps stakeholders to understand the new Standard's principles very well. The activities of the board promote greater consistency in stakeholders' understanding of new Standards as the practice develops, which supports

Read More

Mkt 421 Week 3 Distribution Strategy Paper

976 Words | 4 Pages

Because they have “developed different cultures, languages, and social and economic traditions” (Carpenter & Sanjyot, 2013). What are the advantages of a single set of international accounting standards? To allow easy comparison of “the financial health of two companies” (Carpenter & Sanjyot, 2013). If you were comparing two companies who used different standards it would be difficult to know which one was actually in a better financial position than the other. One might look better than the other based on how it is presented, but in reality they are not.

Read More

Explain 5 Step Process For Revenue Recognition Under Asc 606

629 Words | 3 Pages

5 step process for revenue recognition under ASC 606 OVERVIEW OF ASC 606 [1] [2] [4]  Revenue recognition is an important standard used in many financial ratios to examine and compare companies. The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) recognized that existing revenue recognition literature varied between their jurisdictions and that both frameworks needed upgrades. The two organizations worked together and Accounting Standards Update (ASU) 2014-09 is the aftereffect of their joint efforts. This update will be part of the Accounting Standards Codification (ASC) as Topic 606: which will replaces the existing revenue recognition literature in Topic 605. [1]

Read More

Fasb Executive Summary

290 Words | 2 Pages

Opinion No. 8 stayed in effect for more than 14 years. Statement of Financial Accounting Standards (SFAS) No. 36 amended Opinion No. 8, but was considered to be an interim standard until FASB completed studying defined benefit pensions and introduced new disclosure requirements. In 1985 SFAS No. 87 “Employer’s accounting for Pensions”

Read More

Accounting 203: Case Out Of The Ethical Standards

346 Words | 2 Pages

Karim ElGuindi Professor Rachel Gambol Accounting 203 6th October 2016 Ethics Assignment 1. In this case out of the ethical standards; competence, confidentiality, integrity and credibility, the standard that is violated is credibility but there are violations to competence and integrity as well. McDale believes she must calculate operating income to be in excess of $200,000 in order for her and many other employees to receive their bonuses.

Read More

FASB Codification The Definition Of Fair Value

1090 Words | 5 Pages

(1)To begin, in the FASB Codification the definition of fair value is stated, “The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” (FASB ASC 820-10-20). I found this explanation in the fair value measurement topic, under the overall subtopic, and in the glossary section. If I was to explain fair value to someone my example would be, if I purchased an asset (interest included) from you, the asset being a car, and you sell it at fair value, the price the market say its worth at the purchase date. This valuation can be found buy looking at the market of a similar product. (2)Furthermore, while reading Fair Value Accounting from Theory to Practice, Dr. Campbell, Dr. Owens-Jackson, and Dr. Robinson touched on the disclosure of fair value.

Read More

The Importance Of Accounting Memo

1616 Words | 7 Pages

Analysis • This section is regarded as the most critical step in writing an effective accounting memo by bringing together the required facts of the research, any supporting authoritative literature, and an accountants overall evaluation before forming a conclusion. • Analysis includes information from relevant guidance, along with an accountant’s own words about how the guidance is applicable. • The memo should contain enough authoritative guidance that the user will not need to perform additional research in the Codification. • Make sure to utilize the concept known as the “guidance sandwich.”

Read More

Cultural Conservatism In Accounting

1043 Words | 5 Pages

The project investigates whether GAAP-mandated moderation will affect the accounting prosses or no. Furthermore, this conservation which is considered as cross-sectional changes in administrative rulesmight drive the differences in non-operating accumulations among nations. The research stated that legal and cultural origin could affect a country 's accounting rules. However, experts do not imagine the influences of GAAP-mandated reaction on the consequences to be very important. Finally, I have noted that the generalizability of the project findings may be somewhat limited since my sample comprises a limited number of companies that are contained in the chosen

Read More

Aes 110 Code Of Accounting Ethics Paper

768 Words | 4 Pages

Individual Assignment Each type of occupation has to be a guide, for an accountant, it is called accounting ethics that represents to the professional jugment and the value of practicing accounting. • Competence Li has been achieving an accounting core competency by being able to perform work in a efficient time. In addition, she is working as a tax manager for 6 firms in Sydney which means she must be able to maintain the professional level in developing her knowledge and skills. More than that, her performance has to be following the standards, regulations and laws, that means “turn a blind eye” is impossible. • Integrity

Read More

More about FASB Accounting Standards Codification Research Paper

Open Document