FASB Codification Guide-2

Eric finishes reading the section finding no other

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Unformatted text preview: c continues on to paragraph 720-35-15-2 where he reads, ―The guidance in this Subtopic applies to all advertising transactions and activities, with specific exceptions noted below.‖ Eric is careful to review the exceptions noted in the third paragraph of the Section. One of the listed exceptions reads ―Fundraising by NFPs (however, this Subtopic does apply to advertising activities of NFPs).‖ This signals to Eric that advertising costs incurred by the entity he is auditing do fall within the scope of the guidance in this Subtopic, again subject to scope exceptions that might be stated elsewhere in the Subtopic. Eric finishes reading the Section, finding no other scope information that is pertinent to his research. Eric also recognizes that the scope declarations he has just read indicate that the Subtopic is scoped independently. Because this is not a conforming or conforming-with-exceptions scope declaration, there is no need to review Section 15 of any other Subtopic. Look Now Go to Section 15 of the Advertising Costs Subtopic of the Other Expenses Topic. Read the Section’s content. Eric recalls that the entity he is auditing opened a homeless shelter having never done so before. He thinks that doing so may be considered a ―start-up‖ activity for accounting purposes, and he knows that there is guidance on start-up costs in Subtopic 15, Start-Up Costs, of Topic 720. As always, there are many ways that Eric could navigate to that Subtopic, but again he chooses the fastest way, which is by using the pop-up menus. After arriving at the Subtopic’s landing page, he navigates to the page for Section 15 of the Subtopic by clicking the link to that Section within the ―Table of Contents‖ outline near the top of the Subtopic’s page. In the first paragraph of the Section, Eric reads, ―The guidance in this Subtopic applies to all nongovernmental entities, including …. Not-for-profit entities (NFPs) …‖ He therefore knows that the entity he is auditing falls within the scope of the guidance in Subtopic 720-15, subject to scop...
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This note was uploaded on 03/27/2014 for the course ECON 12586 taught by Professor Yorambarzel during the Fall '09 term at University of Washington.

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