FASB

FASB Accounting Standards

FASB Accounting Standards

Analysis of Accounting Policies in FASB

In January 2008, the FASB launched the authentication Phase of its Accounting Standards Codification Project. The Codification uses a consistent structure to display its reorganization of the existing GAAP literature into approximately 90 topics. Current SEC guidance will be organized in a comparable relevant arrangement in separate SEC sections. The Codification incorporates all level A through D standards of accounting in the hierarchy of current GAAP.

The system encourages the readers, to utilize the online Codification Research System. It is free of charge for one year and users are asked to provide feedback on the accuracy of the Codification. Changes due to new standards and user feedback during the confirmation period will be added to the Codification. The FASB expects to formally approve the Codification as the single source of authoritative guidance. SEC guidance will constitute a separate source of authoritative guidance (FASB 2008). Upon formal approval, all accounting literature not incorporated into the Codification will be deemed non-authoritative. The FASB expects the codification to:

It reduce the efforts and the amount of time needed to solve an accounting research issue.

It will improve the usability of the accounting literature, thereby reducing the chances of not complying with GAAP

Issuance of new standards will provide real-time updates.

FASB has segmented the authoritative literature into various topics, subtopics, sections, and subsections.

The financial accounting and reporting literature is the property of the financial Accounting Standards Board (FASB). The FASB posts the Statements of Financial Accounting Standards online at www.fasb.org. The Board has formulated a comprehensive system using classified fronts for each statement of the financial statements' component. The codification structure used in the classification system follows the following pattern: XXX-YY-ZZ-PP, where XXX=Topic, YY=Subtopic, ZZ=Section, PP=Paragraph. An 'S' preceding the section number denotes SEC guidance ...