Intermediate Accounting Research Project

1. What is the FASB Accounting Standards Codification? The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. 2. When did the codification become effective? The Codification is effective for interim and annual periods ending after September 15, 2009. 3. The FASB had three primary goals in developing the Codification. Identify them. a. Simplify user access by codifying all authoritative US GAAP in one spot. b. Ensure that the codified content accurately represented authoritative US GAAP as of July 1, 2009. c. Create a codification research system that is up to date for the released results of standard-setting activity. 4. Among other things, the Codification is expected to do what? a. Reduce the amount of time and effort required to solve an accounting research issue b. Mitigate the risk of noncompliance through improved usability of the literature c. Provide accurate information with real-time updates as Accounting Standards Updates are released d. Assist the FASB with the research and convergence efforts. 5. When you consider the Topical Structure Hierarchy, “Topics” represent a collection of related guidance. For example, Leases is a Topic. The Topics correlate very closely to standards issued by the International Accounting Standards Board (IASB). Identify the five main areas that “Topics” reside in? a. General Principles (Topic Codes 105–199). These Topics relate to broad conceptual matters. Topics include Generally Accepted Accounting Principles. b. Presentation (Topic Codes 205–299). These Topics relate only to presentation matters and do not address recognition, measurement, and derecognition matters. Topics include Income Statement, Balance Sheet, Earnings per Share, and so forth. c. Financial Statement Accounts (Topic Codes