Wiley GAAP: Financial Statement Disclosure Manual

1ASC 105 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

1. Authoritative Literature
   1. What Is GAAP?
   2. Accounting Principles and Concepts
      1. Recognition Principles
      2. Disclosure Principles
   3. The Concept of Materiality
   4. Descriptions of Materiality
      1. Quantitative Factors
      2. Qualitative Factors
      3. Degree of Precision
2. Disclosure and Presentation Requirements

AUTHORITATIVE LITERATURE

Accounting Standards Codification (ASC) Topic 105 establishes the FASB Accounting Standards Codification^TM (the Codification) as the source of authoritative GAAP. ASC 105 contains no disclosure or presentation requirements.

What Is GAAP?

The Codification (ASC) is the:

… source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. In addition to the SEC's rules and interpretive releases, the SEC staff issues Staff Accounting Bulletins that represent practices followed by the staff in administering SEC disclosure requirements, and it utilizes SEC Staff Announcements and Observer comments made at Emerging Issues Task Force meetings to publicly announce its views on certain accounting issues for SEC registrants. ASC 105‐10‐05‐1

In the absence of authoritative guidance, the Codification offers the following approach:

If the guidance for a transaction or event is not ...