FASB Codification Guide-2

If section 15 of an overall subtopic contains a

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Unformatted text preview: ic accounting guidance that you find in the Codification, you will likely need to review Section 15, Scope and Scope Exceptions, in one or more of the Codification’s Subtopics. It is essential that you know how to comprehend the four fundamental kinds of scope declarations that you may find in a Subtopic’s Section 15: Pervasive Conforming Conforming with Exceptions Independent. Pervasive Section 15 scope declarations are found only in Overall Subtopics. Keep in mind, however, that not all Topics contain an Overall Subtopic, and not all Overall Subtopics contain pervasive scope declarations. If Section 15 of an Overall Subtopic contains a pervasive scope declaration, that means the declaration is associated with all Subtopics within the same Topic, not just the Overall Subtopic. For example, the scope declaration in Section 840-10-15 reads: ―The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics for the Leases Topic.‖ Lesson 4: Understanding the Scope of Guidance 38 Conforming Section 15 scope declarations are found in only in Subtopics other than Overall Subtopics. Keep in mind, however, that not all Topics contain Subtopics other than an Overall Subtopic, and not all non-Overall Subtopics contain conforming scope declarations. If Section 15 of a non-Overall Subtopic contains a conforming scope declaration, that means the declaration states explicitly that the scope of the guidance in the Subtopic is the same as the pervasive scope declared in Section 15 of the Overall Subtopic of the same Topic. For example, the scope declaration in Section 840-20-15 reads: ―This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic . . .‖ Alternatively, a conforming scope declaration may be conforming with exceptions.‖ Such a declaration states explicitly that the scope of the guidance in the non-Overall Subtopic is the same as the pervasive scope declared in Section 15 of the Overall Subtopic of the same...
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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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