1. RUNNINGHEAD: FASB CODIFICATION SYSTEM ORIENTATION PAPER
FASB Codification System Orientation Paper
Student
ACC497
January 22, 2014
Professor

2. FASB Codification System Orientation Paper
Introduction
In 1973, the Financial Accounting Standards Board (FASB)was identified as the
private sector organization to establish financial accounting standards that oversee the
compliance of all financial reports created by nongovernmental businesses. They were standards
accepted as authoritative by the Securities and Exchange Commission (SEC), and the American
Institute of Certified Public Accountants (AICPA). Accountants today must utilize these
regulations established in accordance with generally accepted accounting principles, GAAP
when producing a companys' financials. This paper discusses the FASB Codification System, the
purpose, and the contents.
The FASB Codification System
The FASB Codification System is a single database developed to house the principles
and standards authorized by GAAP. The platform provides access to the financial statement
which saves time researching consistent information in a single source. The ultimate reason for
this system is to address GAAP principles quickly and spend less time researching ("Faf And
Aaa Joint Offer To Provide Fasb Codification And Gars Online To Accounting Faculty And
Students", n. d.).
The Purpose of FASB Codification System
According to "Moaten Professional Accountants" (n. d.), "The purpose of the FASB Codification
system is to make the accounting standards easier to find and navigate through by using one
online database under a mutual referencing system." Businesses can extract information to
produce their companys' financial reports, which allows for uniformity of the information
imparted and acts to prevent the risk of non-compliance ("Moaten Professional Accountants", n.
d.).

3. FASB Codification System Orientation Paper
Contents of the FASB Codification System
The FASB Codification System consists of nine areas split by topics for ease of access by
the user. The individual topics list GAAP, presentation, assets, liabilities, equity, revenue,
expenses, broad transactions, and industry with explanations about GAAP as to status, overview,
background, and the objectives for use of ease by the nongovernmental entities in the preparation
of financial reporting in accordance with GAAP. The presentation portion identifies various
forms of financial statements. The asset portion lists cash, cash equivalents receivables,
investments, inventories, and other assets, deferred costs, intangibles, and property, plant, and
equipment. The liabilities portion provides information to reporting liabilities for different and
unusual businesses, including special liabilities such as disposal costs, commitments, debt, and
others. The equity portion shows increases/decreases in a companys' stockholdings through
dividends, splits, treasury stock, and spinoffs. The revenue portion provides direction for nonprofits, the federal government, and healthcare companies. Expenses provide details of costs and
services, salaries, research and development, and income tax. Broad transactions cover 14 areas
identifying a various number of sections such as, business combinations, consolidation, financial
instruments, including foreign currency. The industry portion is the last section;. This section
provides information on agricultures, airlines, contractors, development stage entities,
entertainment, extractive activities, financial services, and non-profits just to name a few.
Conclusion
The FASB Codification System database is ideal for accountants who prepare financial
statements. The information is detailed, yet simplified for easy research and understanding of
financial information in accordance with GAAP. This new system provides real-time updates to
prevent the possibility of non-compliance.

4. FASB Codification System Orientation Paper
References
FAF and AAA joint offer to provide FASB codification and GARS online to accounting faculty
and students. (n.d.). Retrieved from http://aaahq.org/FASB/Access.cfm
FASB Accounting Standards Codification. (2012). About the FASB Accounting Standards
Codification Research System Website. Retrieved from https://asc.fasb.org/about
FASB Accounting Standards Codification. (2012). Retrieved from
https://asc.fasb.org/home&agreed=1
Moaten professional accountants. (n. d.). Retrieved from
http://moatenaccounting.blogspot.com/2013/01/what-is-fasb-codification-systemwhat.html