Fasb Codification System Orientation

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FASB Codification System Orientation

The Financial Accounting Standards Board (FASB) became necessary to accounting standards in order to ensure certain methods and structures are followed. The FASB is not the primary group to hold this responsibility, and because of this confusion can arise from complying with Generally Accepted Accounting Principles (GAAP). In order for the FASB to simplify standards, the Accounting Standards Codifications was established. The FASB ASC is designed to simplify user access to GAAP. Due to the access granted to the FASB, the FASB ASC has a complete source on GAAP.
The ASC makes an effort to provide users with updated GAAP information, in an easy to access location. The FASB ASC is able to improve accuracy with accounting practices through the simplified and updated research system. One way that the ASC simplified GAAP, by created nine sections in the ASC. The nine sections include general principles, presentation, assets, liabilities, equity, revenue, expenses, broad transactions, and industry. Each section gives the user guidance on the related field of accounting. Such that the general principles section is considered to be an overview on GAAP and the presentation sections covers the financial statement presentation guidelines.
Accounting can be considered living as it continually is evolving with society and the rules and regulations are updated consistently. From the constant feed of change from accounting standards, the FASB ASC was created as a way to organize and simplify user access to the GAAP. By doing this, users are able to stay up-to-date with new regulations, and increase accuracy when referring to certain parts of GAAP through utilizing the ASC’s nine content areas. The FASB ASC has created a solution to regulating accounting and providing a simplified codification of GAAP. References

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