Unformatted text preview: e exceptions that might be stated elsewhere in the Subtopic.
Eric continues on, where he reads in the fourth paragraph, ―The guidance in this
Subtopic does not apply to the following transactions and activities: …‖ He is careful to
review the listed exclusions, which include ―Costs of advertising.‖ Eric has learned that the
guidance in the Subtopic does not apply to advertising costs. He finishes reading the Section
to ensure that there is no other scope information that is pertinent to his research. Again, Eric
recognizes that the scope declarations he has just read indicate that the Subtopic is scoped
independently of other Subtopics within Topic 720.
Another potential source of relevant accounting guidance that Eric is aware of in
Topic 720 is shared Subtopic 958, Not-for-Profit Entities (as a shared Subtopic, it is the same
as Subtopic 958-720). The majority of Industry Subtopics intersect with General Topics.
Industry Subtopics mirror the general Topic structure both in title and classification code, and
the content resides in the Industry Topic. The use of a consistent code allows the FASB to
create one version of the content that resides in a single location but allows users to access
the same content from multiple locations in the navigation structure. For example, a user can
access the system from the perspective of the Not-For-Profit Entities looking for Other
Expenses content. Once again, Eric navigates to the Subtopic’s page using the pop-up menus
and from there navigates to the page for the Subtopic’s Section 15. Lesson 4: Understanding the Scope of Guidance 40 Look Now
Go to Section 15
of the Start-Up
Costs Subtopic of
Section’s content. In the first paragraph of the Section, Eric reads ―This Subtopic follows the same
Scope and Scope Exceptions as outlined in the Overall Subtopic, …‖ which is followed by a
link to Section 15 in Subtopic 10, Overall, of Topic 958. Eric observes that this is not a link
to Section 15 in the Overall Subtopic of Topic 720 (as noted previously, the Overall Subtopic
of Topic 720 does not contain a Sectio...
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- Fall '09
- ........., Financial Accounting Standards Board