Question

You will research each topic and respond to specific questions about each topic. For some of the topics you will also be asked to interpret how the technical standard is applied or what the objective(s) of the related GAAP rules are attempting to address or other questions as set forth under each topic.

FASB Accounting Standards Codification (FASC)

This section deals with certain general background considerations and information related

to the FASC and the answers can be found by clicking the “About the Codification”

and “Notice to Constituents” sections on the FASC Welcome Page. This section is a good general source of information about the FASC and should be reviewed prior to starting to answer the specific questions set forth in all sections. The related research questions that you must answer are:

(a) When did the FASC Codification become effective?

(b) Did the FASC change prior GAAP?

(c) What does the FASB expect from the new FASC structure and system?

(d) What are the “topics” used in the ASC?

(e) Are Securities and Exchange Commission (SEC) references included in the ASC?

Answer 1

(a)The FASB codification become effective for the interim and annual periods ending after 15 September, 2009 and the release date is 1 July, 2008.

(b) The FASC did not change prior GAAP instead they present the new structure with organised and easy to use for online research users. It helps users to find all contents in one location. The FASB expects the new research system will reduce the searching time and at the same time present accurate information.

(c) FASB expect four things from the new FASC system and structure (1) FASB expect the new system will reduce the amount time and effort required to solve an accounting research issue. (2) Mitigate the risk of non compliance through improved usability of the literature. (3) FASB hope the new system provide accurate information with real time updates as ASU are released. And last but not least, assist the FASB with the research and convergence efforts.

(d) (1)General Principles area (Topic Codes 105-199) (2) The Presentation area (205-299) (3) The Assets area (305-399) (4) The Liabilities area (405-499) (5) The Equity areas (505-599) (6)The Revenue (605-699) (7)The expenses areas (705-799) (8)The Broad Transactions area (805-899) (9) The Industry area (905-995)

(e) Yes