Individual Assignment: Fasb Codification System Orientation Paper
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Week 1 Individual Assignment: FASB Codification System Orientation Paper
The FASB Codification System is a system that allows users to access the authoritative content, perform research, and submit feedback. Purpose of the FASB of the FASB Codification System is to make the expansive amount of different accounting standards easier to find and navigate through by using one online database under a shared referencing point. The system helps users to make better accounting decisions because it organizes the accounting laws, principles, and guidelines saving those in the accounting field time and effort. It eases the research of accounting literature and reduces a risk of noncompliance.
The nine content areas of the FASB Codification System are general principles, presentation, assets, liabilities, equity, revenue, expenses, broad transactions, and industry. There are different items of importance located under each of the different content areas. Under the general principles the items of importance include the Generally Accepted Accounting Principles (GAAP). It gives an overall look at all of the GAAP and allows the user to look at each principle in more detail in a very user-friendly setup.
The second of the nine content areas is the presentation. It has items of importance that include the presentation of financial statements, the balance sheet, and income statement. Under each of these important items they are broken down even more to include more detail and feedback to the user. Assets are the third content area of the FASB Codification System. It also has many items of importance listed under it that include cash and cash equivalents, property plant, and equipment, and receivables.
The next content area is the liabilities section. Included within the liabilities section users can find items of importance like deferred revenue, asset retirement and environmental obligations, and exit and disposal cost obligations. The fifth content area is the equity section which includes important items like treasury stock and stock and dividend splits.
The sixth content area of the FASB Codification System is the revenue section. Within the revenue section there are items of importance such as revenue recognition and how different types of industries should recognize and categorize their revenue. Next in the content areas is the expenses section which includes important items of information for users that include cost of sales and services, research and development, and income taxes.
The eighth content area of the FASB Codification System, is the broad transactions. This content area includes items of importance such as foreign currency matters and interest. The final content area is the industry section and it includes important items like agriculture, airlines, and contractors. This will assist those who in the accounting industry who need laws and principles that apply to a specific