Intermediate Accounting, Thirteenth Edition

Preface

FASB Codification—The New View of Generally Accepted Accounting Principles

Learning Generally Accepted Accounting Principles (GAAP) used to be a daunting task, as the documents that comprise it vary in format, completeness, and structure. In some cases, these documents are inconsistent and difficult to interpret. As a result, financial statement preparers sometimes are unsure whether they have the right GAAP, which makes determining what is authoritative, and what is not, difficult. In response to these concerns, the FASB developed the Financial Accounting Standards Board Accounting Standards Codification (or simply, the Codification). The Codification provides in one place all the authoritative literature related to a given topic. It explains what GAAP is and eliminates nonessential information, such as redundant document summaries, basis for conclusions sections, and historical content. This greatly simplifies user access to GAAP.

Using the FASB Codification

The Codification – accessible at http://asc.fasb.org/home—is available as an online, real-time database. Presently, the Codification is available to use at no cost. You simply need to register by clicking on the Registration link, which is located in the area marked "D" on the Codification screenshot shown below.

In order to use the Codification effectively, you need to understand its structure. Four major categories of ...