The FASB had three primary goals in developing the Codification:
1. Simplify user access by codifying all authoritative US GAAP in one spot.
2. Ensure
... [Show More] that the codified content accurately represented authoritative US GAAP as of July1,
2009.
3. Create a codification research system that is up to date for the released results of
standard-setting activity.
b. The Codification is expected to improve accounting practice by:
1. Reducing the amount of time and effort required to solve an accounting research issue
2. Mitigating 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. Assisting the FASB with the research and convergence efforts.
c. The FASB ASC is composed of the following literature issued by various standard setters:
1. Financial Accounting Standards Board (FASB)
a. Statements (FAS)
b. Interpretations (FIN)
c. Technical Bulletins (FTB)
d. Staff Positions (FSP)
e. Staff Implementation Guides (Q&A)
f. Statement No. 138 Examples.
2. Emerging Issues Task Force (EITF)
a. Abstracts
b. Topic D.
3. Derivative Implementation Group (DIG) Issues
4. Accounting Principles Board (APB) Opinions
5. Accounting Research Bulletins (ARB)
6. Accounting Interpretations (AIN)
7. American Institute of Certified Public Accountants (AICPA)
a. Statements of Position (SOP)
b. Audit and Accounting Guides (AAG)—only incremental accounting guidance
c. Practice Bulletins (PB), including the Notices to Practitioners elevated to Practice Bulletin
status by Practice Bulletin 1
d. Technical Inquiry Service (TIS)—only for Software Revenue Recognition
Additionally, in an effort to increase the utility of the FASB ASC for public companies, relevant
portions of authoritative content issued by the SEC and selected SEC staff interpretations and
administrative guidance have been included for reference in the Codification, such as:
1. Regulation S-X (SX)
2. Financial Reporting Releases (FRR)/Accounting Series Releases (ASR)
3. Interpretive Releases (IR)
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4. SEC Staff guidance in:
a. Staff Accounting Bulletins (SAB)
b. EITF Topic D and SEC Staff Observer commen [Show Less]