Question

What are the guidelines for determining GAAP in the FASB ASC?

Answer 1

The FASB Accounting Standards Codification refers to the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB which is applicable to the nongovernmental entities. Financial Accounting Standards Board (FASB) Accounting Standards Codification is effective for interim as well as annual periods ending ending after September 15, 2009. The Codification consists of the authoritative standards which can be applied to both public nongovernmental entities and non-public nongovernmental entities.

The guidelines are issued by FASB wih three primary goals in developing the Codification:

1. Simplification in user access by codifying all authoritative US GAAP under one spot.

2. Ensuring that the codified content properly represent the authoritative US GAAP as of July 1, 2009.

3. Creation of a codification research system which is up to date for the results released by standard-setting activity after September 15, 2009.