What Is the Fasb Codification System?

What is the FASB Codification System? What is the purpose of the FASB Codification System? How can it be used to make better accounting decisions? Give examples.

The FASB Codification System is a computerized system that lets users have access to reliable accounting subjects and users are able to do research and provide FASB feedback. The purpose of the FSAB Codification System is to provide users, such as accounting professionals, analysts, and investors, an easier way to locate accounting standards in a single place. The content of the FASB Codification System includes all levels "A through D" GAAP issued by a standard setter and pronouncements that can be issued by FASB, EITF, AcSEC, the Accounting Principles Board, and relevant portions of authoritative content issued by the SC and selected SEC staff interpretations and administrative guidance (Financial Accounting Standards Board, 2008). The FASB Codification System can be used to make better accounting decisions by giving accounting professionals a user friendly computerized environment to access important accounting information, and by having real-time updates, which will help prevent any risks of noncompliance.

browsing by Topic, searching, and Go To navigation; joining sections and combining subsections for viewing user-selected excerpts; cross reference report and archive to locate and access legacy standards; various print options including Printer-Friendly utility for viewing source references; archive features for accessing any previous version of the content; glossary term display feature for quickly viewing definitions; What's New feature for accessing recently issued content; What Links Here feature for identifying content related to a specific paragraph; e-mail feature for sending comments to colleagues; personal annotation feature for keeping notes about selected content; and current location feature for quickly assessing where you are (FASB, 2008).

Reference

Financial Accounting Standards Board. (2008). FASB Codification Q & A. Retrieved from http://aaahq.org/FASB/FASB_FAQ.pdf

What are Generally Accepted Accounting Principles (GAAP)? How do GAAP affect financial reporting? How might GAAP need to change to accommodate today's dynamic business environment?

The Generally Accepted Accounting Principles is a common set of principles, standards, and procedures that accountants and businesses must follow when they prepare and present their financial statements. GAAP affects financial reporting in many different ways. GAAP sets the principles, laws, guidelines, and the framework that accounting professionals must follow when reporting accounting information and financial statement