Fasc Codification

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Submitted By giovannasanz
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Accounting 3366 (a) When did the FASC Codification become effective? The FASC Codification actually became effective on July 1, 2009. (b) Did the FASC change prior GAAP? No, it actually did not. However, it did re-structure GAAP. (c) What does the FASB expect from the new FASC structure and system? 1. Reduce the amount of time and effort required to solve an accounting research issue 2. Mitigate the risk of noncompliance through improved usability of the literature 3. Provide accurate information with real-time updates as Accounting Standards Updates are released 4. Assist the FASB with the research and convergence efforts. (d) What are the “topics” used in the ASC? There are six topics: 1. The General Principles Area (Topic Codes 105–199) relates to broad conceptual matters. 2. The Presentation Area (Topic Codes 205–299) addresses how information is presented in the financial statements. It does not address other aspects of financial accounting such as recognition, measurement, or derecognition for individual financial statement accounts. 3. The Assets, Liabilities, and Equity Areas (Topic Codes 305–399, 405–499, and 505–599, respectively) contain guidance about specific individual balance sheet accounts (e.g., cash, accounts payable, additional paid-in capital). 4. The Revenue and Expenses Areas (Topic Codes 605–699 and 705–799, respectively) contain guidance about specific individual income statement accounts (e.g., sales revenue, employee compensation).…...

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