Question

Assignment 1: FASB Codification

Due Week 3 and worth 80 points

                                                  

The Financial Accounting Standards Board (FASB), is a domestic, not-for-profit organization based in Connecticut. For over forty years, the FASB has helped set reporting standards within the accounting trade. You may visit their website by clicking here to read more about the history of the FASB. One of the FASB’s major contributions to the accounting profession is the FASB Codification. Codification content is organized by subject matter in a hierarchy. Think of it as an “outline” structure that you can drill into to get information regarding your specific topic of interest.

The Codification’s hierarchy begins with the following four highest levels:

• Area
• Topic
• Subtopic
• Section

As you research, you will drill down in the hierarchy, beginning with the Area of interest, then picking the Topic within the area, then the Subtopic, then the Section. Areas, Topics, and Subtopics are simply landing pages that contain tables of contents. Sections are the only pages that have Codification content.  

For example, if you wanted to research costing inventory, you would drill down by clicking on the following: Assets > 330 Inventory > 10 Overall > 30 Initial Measurement > General > 30-1 Cost Basis

You would then see the detailed codification specific to costing inventory.

Although there are literally thousands of sections within the hundreds of subtopics, once you practice and get used to moving around in the Codification, it is easy to research your accounting topics. You may find yourself utilizing it not only for class research, but also for topics you are working on in your professional life and topics that you may simply find interesting.

Note: Once you have drilled down to your subtopic, you may find it useful to click on “Combine Subsections”. This will show the different subsections and their content on one page, allowing you to quickly scan and review areas of interest to you.

The Codification is organized within the following 9 Areas:

• General Principles
• Presentation
• Assets
• Liabilities
• Equity
• Revenue
• Expenses
• Broad Transactions
• Industry

Within the Industry area, there are 32 industries identified that have specific items unique to them. These industries range from five different areas of Entertainment to Mining, Financial Services, Airlines, Agriculture, Franchisors, Software, Health Care Entities, and many more!

To complete this assignment, you will need to access the FASB Codification at http://aaahq.org/ascLogin.cfm. (Note: A login and password are required to access this site and are available from your professor.)

For Assignment 1, write a 2-to-4-page paper in which you:

1. Select one of the industries that interests you, and briefly explain why.
2. Identify how many subtopics are in the industry you selected.
3. Pick two subtopics within your selected industry that are applicable to a Balance Sheet (something to do with assets, liabilities, or equity)
4. Identify your chosen subsections by number and title. Explain what they mean in your own words.
5. Based on your review of your chosen industry, identify what you think accountants in the industry might be focused on as an area or areas of concern.
6. This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.

The specific course learning outcomes associated with this assignment are:

• Examine the long-term assets portion of a balance sheet, including property, plant, and equipment and intangible assets.
• Assess GAAP, IFRS, and how to research utilizing the FASB Accounting Standards Codification.

  Assignment 1: FASB Codification

  Due Week 3 and worth 80 points

                                                    

  The Financial Accounting Standards Board (FASB), is a domestic, not-for-profit organization based in Connecticut. For over forty years, the FASB has helped set reporting standards within the accounting trade. You may visit their website by clicking here to read more about the history of the FASB. One of the FASB’s major contributions to the accounting profession is the FASB Codification. Codification content is organized by subject matter in a hierarchy. Think of it as an “outline” structure that you can drill into to get information regarding your specific topic of interest.

  The Codification’s hierarchy begins with the following four highest levels:

• Area
• Topic
• Subtopic
• Section

• As you research, you will drill down in the hierarchy, beginning with the Area of interest, then picking the Topic within the area, then the Subtopic, then the Section. Areas, Topics, and Subtopics are simply landing pages that contain tables of contents. Sections are the only pages that have Codification content.  

  For example, if you wanted to research costing inventory, you would drill down by clicking on the following: Assets > 330 Inventory > 10 Overall > 30 Initial Measurement > General > 30-1 Cost Basis

  You would then see the detailed codification specific to costing inventory.

  Although there are literally thousands of sections within the hundreds of subtopics, once you practice and get used to moving around in the Codification, it is easy to research your accounting topics. You may find yourself utilizing it not only for class research, but also for topics you are working on in your professional life and topics that you may simply find interesting.

  Note: Once you have drilled down to your subtopic, you may find it useful to click on “Combine Subsections”. This will show the different subsections and their content on one page, allowing you to quickly scan and review areas of interest to you.

  The Codification is organized within the following 9 Areas:

• General Principles
• Presentation
• Assets
• Liabilities
• Equity
• Revenue
• Expenses
• Broad Transactions
• Industry

• Within the Industry area, there are 32 industries identified that have specific items unique to them. These industries range from five different areas of Entertainment to Mining, Financial Services, Airlines, Agriculture, Franchisors, Software, Health Care Entities, and many more!

  To complete this assignment, you will need to access the FASB Codification at http://aaahq.org/ascLogin.cfm. (Note: A login and password are required to access this site and are available from your professor.)

  For Assignment 1, write a 2-to-4-page paper in which you:

• Select one of the industries that interests you, and briefly explain why.
• Identify how many subtopics are in the industry you selected.
• Pick two subtopics within your selected industry that are applicable to a Balance Sheet (something to do with assets, liabilities, or equity)
• Identify your chosen subsections by number and title. Explain what they mean in your own words.
• Based on your review of your chosen industry, identify what you think accountants in the industry might be focused on as an area or areas of concern.
• This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.

• The specific course learning outcomes associated with this assignment are:

• Examine the long-term assets portion of a balance sheet, including property, plant, and equipment and intangible assets.
• Assess GAAP, IFRS, and how to research utilizing the FASB Accounting Standards Codification.

Answer 1

The financial Accounting Standards Board The FASB is the independent, Private sector, not-for-portit organization based in Norwalk, Connecticut, that establishes Dinancial accounting and reporting Standards for public and private companies and not-for- profit organisations that follow Generally Accepted Accounting Principles (GAAP). The PASB is recognized by the Securities and Exchange Commission as the designated accounting Standard setter for Public Companies. FASB Standards are recognized as authoritative by many other organizations, including State Boards of accountancy and the American Institute of CP: The FASB and the GASB are charged with setting the highest quality standards through a process that is roboust, comprehensive and inclusive The FAF Management is responsible for providing Strategic counsel and services that support the work of the Standard-setting Boards. •

The financial Accounting Standards Board The FASB is the independent, Private sector, not-for-portit organization based in Norwalk, Connecticut, that establishes Dinancial accounting and reporting Standards for public and private companies and not-for- profit organisations that follow Generally Accepted Accounting Principles (GAAP). The PASB is recognized by the Securities and Exchange Commission as the designated accounting Standard setter for Public Companies. FASB Standards are recognized as authoritative by many other organizations, including State Boards of accountancy and the American Institute of CP: The FASB and the GASB are charged with setting the highest quality standards through a process that is roboust, comprehensive and inclusive The FAF Management is responsible for providing Strategic counsel and services that support the work of the Standard-setting Boards. •

Return on Assets Total asset turnover Net Profit Hargin Tak operating prodit Margin Effect of non operating items Effect