The Financial Accounting Standards Board (FASB) Codification− Research System (the Codification) enables comprehensive, but not complete, research on accounting issues for the private sector. The Codification includes essential1 content and implementation guidance from prior generally accepted accounting principles (GAAP) levels A–D and organizes this information into approximately ninety topical areas, described later in this chapter. A master glossary is also contained in the Codification.
To provide users with a more comprehensive database, the Codification team included limited Securities and Exchange Commission (SEC) content (Regulation S-X, Financial Reporting Releases, Accounting Series Releases, Interpretive Releases, Staff Accounting Bulletins, EITF Topic D, and SEC Staff Observer Comments) in the Codification. SEC content in the Codification is labeled with the letter “S.” The included SEC literature is for user convenience only, and the researcher should be aware that SEC sources follow a traditional legal hierarchy.
Upon adoption, the Codification superseded all preexisting nongovernmental accounting and reporting standards. The Codification replaced the prior five-level GAAP2 hierarchy with two levels: authoritative and nonauthoritative. Thus, the Codification supersedes the following standards and implementation guidance issued by the FASB and prior standard-setters: