FASB Codification



FASB Codification database- GAAP

Introduction

In the United States generally accepted accounting principles, commonly abbreviated as U.S. GAAP or simply GAAP (Generally Accepted Accounting Principles), are accounting rules used to prepare, submit and deposit balances for a wide variety of entities, including public and private companies, nonprofit organizations and government agencies. Generally, GAAP include basic conditions, principles and constraints: it is not a rigid set of rules. This allows for some flexibility in the interpretation of its written agreements and standards.

Discussion

The Purpose of FASB Codification

In 2009, the FASB issued Statement No. 168 "Coding the FASB Accounting Standards " (Encryption), which defines the encoding as the authoritative source of GAAP. The rules and recommendations issued by the SEC application sources are authoritative GAAP for those who register with the SEC. They can be events or transactions not processed by the encoding and, if so, you must pay attention to other accounting principles for similar transactions or events, as part of a source of authoritative GAAP for that entity and then turn to a non-guidance authoritative derived from other sources.

As the legislation of the U.S. GAAP differ somewhat from International Financial Reporting Standards (IFRS) and the amounts reported under U.S. GAAP may not be comparable with those of companies using IFRS. The FASB and IASB are working to reconcile these differences, with the goal of continuing to appraise in the future.

Regulation on accounts, play a significant role in the stock market as there are huge mixed perceptions regarding the investment in the publicly traded companies. This mixed perception is the capabilities of company to hide the financial distress which usually happen when company mislead the accounting policies. When accounting laws are implemented in any firm they lower this perception which forms a dilemma within the investors. Companies are subject to this ...