March 3, 2014
In accounting professionals need to know and enforce the rules and regulations set forth in the GAAP. Schooling helps to teach about this, but having a resource to reference when working in the field is a great advantage. The FASB Codification System is just what accounting professionals and students use to get the most update information about the GAAP.
FASB Codification System
The FASB Codification System is a resource that contains “authoritative GAAP” that is meant for non-government organizations. They system was a long 5 year process that included over 200 people from different organizations. It is also an easy system to navigate and it contains useful information for accounting professionals and students. It is also a good research tool for students because it gives accurate information that is updated periodically. This is also a positive for accounting professionals because they can keep up with the changing information.
The purpose of the FASB Codification System is to be a resource for professionals so there is less of a chance of violations of the GAAP. Another purpose is that it saves times when completing research because of how easy it is to navigate. Accounting professionals and students have a simple, time saving way to look up important information about the GAAP.
The nine content areas located in the FASB Codification System are general principles, presentation, assets, liabilities, equity, revenue, expenses, broad transactions and industry. The general principles include information about the GAAP. Presentation includes information on how to present the different financial information on the reports. Assets and liabilities contain information on the classification of the items and where they belong. Equity contains information on…