FASB Accounting Standards Codification

The Financial Accounting Standards Board has completed its codification process. The FASB Accounting Standards Codification is the single source of authoritative accounting and reporting standards in the United States, other than guidance issued by the Securities and Exchange Commission (SEC), for all nongovernmental entities. It is the initial step in preparing U.S. accounting standards for convergence with International Financial Reporting Standards (IFRS).

The codification goal was to simplify user access to all authoritative U.S. generally accepted accounting principles (GAAP) by providing all authoritative literature relating to a particular topic in a single, integrated offering using an online, real-time database. The database can be found at (http://asc.fasb.org).

The Codification uses a topical structure in which guidance is organized into Areas, Topics, Subtopics, Sections, and Subsections. This structure effectively organizes the content without regard to the original standard setter or standard from which the content was derived.

AREAS

Areas are the broadest category in the Codification and represent a grouping of topics.

TOPICS

Topics are the broadest categorization of related content and represent a collection of related guidance. The Topics reside in four main areas of Presentation (Topic codes 205-299), Financial Statement Accounts (Topic codes 305-700), Broad Transactions (Topic codes 805-899) and Industries (Topic codes 905-999).

SUBTOPICS

Subtopics represent subsets of a Topic and are generally distinguished by type or by scope. For example, Operating Leases and Capital Leases are two Subtopics of the Leases Topic distinguished by type of lease. Each Topic contains an Overall Subtopic that generally represents the pervasive guidance for the Topic. Each additional subtopic represents incremental or unique guidance not contained in the Overall Subtopic. Subtopics unique to a Topic use classification numbers between 00-99. In addition, Topics may contain Subtopics the mirror the general Topics.

SECTIONS

Sections represent the nature of the content in a Subtopic such as Recognition, Initial Measurement, Disclosure, and Implementation Guidance and Illustrations. Every Subtopic uses the same Sections, unless there is no content for a particular section.

The Sections of each Subtopic are numbered as follows: Status (00), Overview and Background (05), Objectives (10), Scope and Scope Exceptions (15), Glossary (20), Recognition (25), Initial Measurement (30), Subsequent Measurement (35), Derecognition (40), Other Presentation Matters (45), Disclosure (50), Implementation Guidance and Illustrations (55), Relationships (60), Transition and Open Effective Date Information (65), Links to Grandfathered Material (70) and XBRL Definitions (75).

SUBSECTIONS

Subsections are a further segregation of a Section and, except for the General Section, occur in a limited number of cases. Each section has at least one General Subsection. A Section may contain additional Subsections as a means of filtering content related to multiple Sections of the same Subtopic. Unlike a section, a Subsection is not numbered.

ONLINE USE

To use the online database you can register as a free user. To register go to the link (http://asc.fasb.org) Click on New User (ORDER). Select Basic View - Free Access (SELECT). Enter your email address and click SUBMIT. Then follow the 4 steps of registration. You will need to come up with a password and actually place an order. The cost is free to basic view users. An email confirmation will be sent to you.