FASB Codification Guide-2

Gaap in the notes that accompany entities financial

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Unformatted text preview: omes As you document and communicate the results of your Codification research, you may need to or want to cite specific Codification content that you have found, like Francine did in the scenario above. When you cite Codification content correctly and completely, you enable yourself and others to refer to the cited content as needed. This lesson will help you learn to: Recognize the necessary and sufficient elements of Codification citations Use a variety of appropriate styles when citing Codification content Navigate accurately and quickly to cited Codification content. CITATIONS IN FINANCIAL STATEMENTS Neither FASB nor SEC standards require reporting entities to cite specific provisions of U.S. GAAP in the notes that accompany entities’ financial statements. Furthermore, the FASB and SEC have discouraged financial statement preparers from doing so. However, if you choose to cite specific provisions of U.S. GAAP in financial statement notes, as is common in practice, you must cite those provisions as found in the Codification. You may use any citation style and you may cite any level of the Codification hierarchy that you consider appropriate. There is no one “right” way. Lesson 5: Citing Codification Content 44 ELEMENTS OF CODIFICATION CITATIONS A proper Codification citation specifies the exact location of the cited content within the Codification’s hierarchical structure. On the basis of a citation, a knowledgeable reader can readily navigate within the Codification to the cited content. To cite specific Codification content correctly and completely, you must first identify where the content is located in the Codification’s hierarchy. You then construct a citation from data elements that describe a ―path‖ through the various levels of the hierarchy to the content’s location. There are several data elements that can be used to describe a path to specific Codification content. Continue reading to learn about the elements that are necessary and sufficient for constructing proper citations. Content at and above the Section Level Citing specific Codification content at and above the Section level of the content hierarchy is straightforward. Every Codification Area, Topic, Subtopic, and Section has a title and may also have a concise identifier, as summarized belo...
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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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