Question

a. What are the major goals of the FASB ASC?  

b. How is the FASB ASC expected to improve the practice of accounting?  

Answer 1

a)The goals of FASB ASC are as follows:

1)To Simplify the user access by codifying all authoritative U.S. GAAP by making available all the authoritative content at one place i.e in one spot, in order to give an assurance that the codification content accurately represented the authoritative US GAAP.

2) The main reason for the creation of the codification is to simplify research by creating a codification research system that is updated for the released results of standard-setting activity. Researching multiple authoritative sources makes the entire research process very complicated. Since it combines all sources of research into one, it facilitates and simplifies the finding of solutions while taking into account all the alternative sources using the codification research system as the primary research tool.

3) The codification was made in order to make the accounting standards simpler to find through a single data base.

b) FASB ASC is expected to improve the practice of accounting in the following manner:

1)The ASC will simplify and increase the speed of the research process. This will save time and ultimately that will result in saving of money.

   2) Prior to the introduction of the FASB ASC, researchers would have actually made an effort to go through the hundreds of pieces of GAAP literature in order to resolve the accounting issue.

3 ) If the FASB achieves its objectives and goals , the accounting practice will also be improved by always having the most recent and updated information or data at its fingertips.