Using the FASB Codification - YouTube

The Financial Accounting Standards Board (or FASB) is the source of generally accepted

accounting principles for non-governmental entities.

Researchers can access the accounting principles online through the Codification.

The Codification is organized by areas, topics, subtopics, sections, subsections, and paragraphs.

Areas are general categories in which accounting principles are organized.

Topics broadly describe the subject you are researching.

Subtopics take a narrower look at the larger topic you selected.

Sections are fairly uniform headings within subtopics, and will include items such as

Scope, Glossary, and Initial Measurement.

Subsections may exist to organize paragraphs, and paragraphs contain the actual guidance

on a particular standard.

A Codification reference looks like this, listing the topic, subtopic, section, subsection

(if applicable), and paragraph.

So if we were looking at the codification for leases, operating leases, initial measurement,

paragraph 1, our final reference would say ASC (for accounting standards codification)

840 (dash) 20 (dash) 30 (dash) 1.

There are several ways to search the Codification.

You can browse for the appropriate content, using the menu on the left to find what you

need.

You can search by keyword.

There is also an advanced search feature available.

You can enter the ASC reference number on the left.

You can enter the historical GAAP designation by clicking Cross Reference at the top of

the page.

You can also search using the Master Gallery to get definitions of key words and phrases

in the codification.

For beginners, the browse option is best.

This is because you probably don’t know the ASC reference numbers, historical GAAP

designations, or even the best keywords to use.

The keyword search only retrieves guidance that contain the exact words you searched,

so it’s important to be familiar with the terminology the Codification uses.

You will get better at the keyword identification process with time.

Let's practice with a browse search.

I'm interested in finding guidance related to Assets, specifically Receivables, and I'm

going to just select Overall.

Next I can choose a specific section that I'm interested in or I can dive a little deeper

and choose a subsection.

I'm going to click Subsequent Measurement.

On this page I can see the actual guidance that is related to assets and receivables.

As you're researching, you might see pending content in the Codification.

This is new content that is not yet fully effective.

Once it becomes fully effective, the old content will be replaced.

After you find guidance relevant to your research, make sure you also find any related Implementation

Guidance and SEC content.

These are both listed as section headings within the Codification.

SEC Content is also included within the Codification and is identified by the letter S preceding

the code.

I can choose either Implementation Guidance or SEC Materials on this page.

You can choose to hide or display the SEC content using the tools at the bottom of the

page.

Click Display, then select Hide SEC Content.

The other tools at the bottom of the page can help you navigate the Codification.

Use Top to jump back to the top of a page.

Use Section Links to jump to a different section of the code.

Print and email are good options for getting back to the code later.

If you ever lose track of where you are within the Codification, simply hover over the paragraph

number to see the subtopic and section number.