Asc Overview Essay

1304 Words Apr 25th, 2013 6 Pages
On September 15, 2009, the Accounting Standards Codification (ASC) became effective causing all previous GAAP literature to become nonauthoritative. The ASC was constructed to simplify and reduce the time required to perform accounting research. It is accessible to subscribers at https//.asc.fasb.org and provides a one stop shop for authoritative GAAP related material. It was many years in the making and made possible by contributions from hundreds of accounting professionals working towards the main goal of streamlining accounting research. Below you will find information about what the Codification is, its goals and purpose, and how affected parties will benefit. Ultimately, after reviewing this information you will gain insight into …show more content…
In the 2012 ASC publication, Notice to Constituents, the Codification defines its three main goals. The goals include:

• Providing a one stop shop for subscribers by offering all of the US GAAP codifications in an organized manner. • Ensuring that all US GAAP codification content is accurate and up to date as of July 1, 2009, and thereon. • Creating a user friendly codification research system that is accurate for the research of all accounting standard-setting activity.

In order to achieve these goals, the ASC simplified authoritative GAAP literature by reorganizing thousands of GAAP pronouncements into approximately 90 accounting topics. It also increased the utility of GAAP research for public and nonpublic nongovernmental companies by providing relevant portions of authoritative content issued by the SEC and selected SEC Staff Interpretations and administrative guidance for reference. Furthermore, the ASC has integrated real-time updates into their platform to capture Accounting Standards Updates as they are released. These real-time updates also include updates on SEC information as it is changed, but delays should be expected when researching newly released SEC information. Additionally, the Codification populates relevant topics when inquiries are performed to provide a more user friendly dashboard in hopes to streamline the research process. Ultimately, the purpose is to provide a simple GAAP research

Related Documents