FASB Codification Guide-2

In doing so the secs us registrants must use the

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Unformatted text preview: ntities are not bound to follow those standards if they think IFRS or IFRS for SMEs is better GAAP. The AICPA has recognized the IASB as an authorized standard setter. In contrast, federal securities laws in the United States require entities that are regulated by the SEC, known as SEC registrants, to file their financial statements with the SEC on a regular basis. In doing so, the SEC’s U.S. registrants must use the FASB’s standards, subject to additional standards that the SEC has the statutory authority to set and that apply only to SEC registrants. Lesson 3: Working with Section-Level Content 27 In general, FASB guidance applies to all nongovernmental U.S. entities, including entities that are SEC registrants as well as entities that are not SEC registrants, with two exceptions: If the scope of the FASB guidance explicitly excludes certain kinds of entities, it applies only to those entities within its scope. If an entity is an SEC registrant and a conflict exists between FASB guidance and SEC guidance, SEC guidance takes precedence over FASB guidance for that entity. Again, the SEC guidance that is included in the Codification applies only to entities that are SEC registrants. It does not apply to other entities. FASB versus SEC Sections In the Codification, SEC guidance is organized in the same manner as—but separate from—FASB guidance. The distinction between FASB and SEC guidance is made at the Section level of the Codification content’s hierarchy. The distinction between FASB guidance Sections and SEC guidance Sections can be readily seen in the ―Table of Contents‖ outline that appears at the top of each Subtopic’s page. SEC Sections are identified with the same standardized two-digit Section numbers and titles as FASB Sections, except that the Section number is preceded by the letter ―S.‖ Section S99, SEC Materials, is also an SEC Section; there is no FASB Section that corresponds to it. SYSTEMATICALLY BROWSING CONTENT WITHIN SECTIONS In the System, after you navigate to th...
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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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