Fasb Financial Accounting Standards

Intermediate Accounting 1

FASB Financial Accounting Standards Codification (FASC) -- Research Assignment Questions

1. FASB Accounting Standards Codification FASC

a. When did the FASC Codification become effective?

The codification is effective for interim and annual periods ending after 9/15, 2009

b. Did the FASC change prior GAAP?

The Codification is not intended to change existing GAAP, which means FASC did not change prior GAAP. However, it restructured accounting and reporting standards for user easily to access online research system.

c. What does the FASB expect from the new FASC structure and system?

* The FASB expect from the new FASC structure and system to have reducing the amount of time and effort required to solve an accounting research issue

* Mitigate the risk of noncompliance through improved usability of the literature

* Provide accurate information with real-time updates as new standards are released

* Assist the FASB with the research and convergence efforts required during the standard-setting process

d. What are the “topics” used in the ASC?

Topics represent a collection of related guidance, which reside in four main areas

* General Principles(105-199)

* Presentation(205-299)

* Financial Statement Accounts(305-799)

* Broad Transactions(805-899)

* Industries(905-999)

e. Are SEC references included in the ASC?

Yes, the SEC references included in the ASC

2. Going Concern – See Exposure Drafts (for 2008) in FASC

f. What is the period that should be evaluated for going concern considerations?

Not to exceed one year (twelve months), and beyond the date of the financial statements will be audited.

[ED 1650-100]

g. Describe some “indicators” of going concern?

* Negative trends, for instance, operating activities losses or not producing cash, working capital deficiencies, and poor liquidity ratios.

* Other financial difficulties, such as...