ACC 4100: FASB Accounting Standards Codification- Prof. Benjamin Pearl, Summer 2020

How to access Newman Library resources for the FASB Codification, including explanatory and interpretative information in journals and other resources.

Short Video Tutorials

The FASB offers tutorials and help on the Codification.

 

CPA Jeff Sailor

CPA Jeff Sailor has two free tutorials on Youtube.com

Part 1 includes Codification structure and how to use it

Part 2 describes Codification research options

 

 

FASB Learning Guide for Codification

Extensive guide, with exercises, is designed for learning more about the Professional View of the Codification.

AICPA Information on Codification

The American Institute of CPAs (AICPA) offers a PowerPoint slide show about the Codification,  to help users with the organization of the Codification and its contents.

PWC Offers Codification Quick Guide


Guide offered by the accounting firm PWC

About the Codification

On July 1, 2009, the Financial Accounting Standards Board (the FASB), approved the Accounting Standards Codification (ASC) as "the single source of authoritative U.S. accounting and reporting standards, other than guidance issued by the Securities and Exchange Commission (the SEC)."

The Codification superseded (replaced) all then-existing SEC accounting and reporting standards by reorganizing the existing authoritative literature.

Now, only one level of authoritative U.S. GAAP exists, other than guidance issued by the Securities and Exchange Commission (SEC). All other literature is non-authoritative.

Codification Organization

The FASB Accounting Standards Codification (ASC) reorganizes accounting literature.

In addition to General Principles (Topic 105), offering an explanation of Generally Accepted Accounting Principles (GAAP)

the  Seven financial accounting and reporting categories, which are numbered, are:

  • Presentation (Topics 205 through 280)
  • Assets (Topics 305 through 360)
  • Liabilities  (Topics 405 through 480)
  • Equity (Topic 505)
  • Revenue (Topic 605)
  • Expenses (Topics 705 through 740)
  • Broad transactions (Topics 805 through 860)
  •  Industry Category  (Topics 905 through 944) contains specific industry guidance.

Also:

  •  Master Glossary provides definitions of terms
  • Other Sources includes accounting standards updates, proposed accounting standards, other exposure documents, Pre-Codification Standards and Maintenance.

More Codification Details--Topics, Subtopics

The seven categories have topics, and the topics have subtopics.

  • If needed, subtopics are divided into sections, which are numbered consistently across all subtopics.
  • Sections provide the actual accounting guidance.

A "SEC Section" is included for topics that are affected by SEC regulations.

 

The subtopic Capital Leases offers an example of the organization:

30 Capital Leases                                           

00 Status                                                  40 Derecognition                                                                                                                                                                                            

05 Overview and Background                  45 Other Presentation Matters

15 Scope and Scope Exceptions             50 Disclosure

20 Glossary                                              55 Implementation Guidance & Illustrations

25 Recognition                                         75 XBRL Elements

30 Initial Measurement                             S00 Status

35 Subsequent Measurement                 S35 Subsequent Measurement

                                                                 S55 Implementation Guidance &

                                                                  Illustrations

                                                                 S75 XBRL Elements

                                                                  S99 SEC Matters                        

Helpful Articles

Toerner, M. C. (2009). A guide to using the Accounting Standards Codification. The CPA Journal, 79(2), 20-25. Toerner is a CPA and an accounting professor.

Ford, C.O. and Thomas, C. William. (2008). Test-driving the Codification, Journal of Accountancy. 206(2), 62+.  The authors are CPAs and accounting professors.