After completing this chapter, you should understand:
• Database research strategies: the five steps.
• The challenges of accounting research.
• The contents of the FASB Accounting Standards Codification Research System (the Codification).
• Using the Codification and other accounting databases to locate U.S. GAAP authorities.
• Examples of using the Codification effectively and efficiently.
• Cases that assist in practicing accounting research.
This chapter provides the researcher with a comprehensive five-step research process as introduced in Chapter 1 for financial accounting research. It focuses primarily on the FASB’s Accounting Standards and the new online FASB Accounting Standards CodificationTM Research System (the Codification). The chapter also includes a discussion on SEC accounting pronouncements. Finally, two examples of simulations for the Financial Accounting and Reporting section of the CPA exam are included in the appendix.
Due to the recent increase in accounting and auditing pronouncements and generally in financial reporting, more and more organizations use an electronic database to gain rapid access to key accounting authorities for decision making. Future accounting professionals will increasingly need research skills.
Professional accounting research is challenging because of the volume of accounting rules, their level of complexity, ...