FASB Codification Guide-2

Subsequently as eric reviews the specific guidance in

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Unformatted text preview: n 15). Eric finds no additional pertinent information in the Section, so he clicks the link found in the first paragraph to go to Section 15 in the Overall Subtopic of Topic 958. As Eric reads the content of that Section, he sees in the second paragraph, ―The guidance in this Topic applies to all not-for-profit entities (NFPs).‖ The remainder of the Section describes in detail the kinds of entities that are considered notfor-profit entities. Eric concludes that the entity he is auditing falls within the scope of the guidance in Subtopic 958-720 (which, as a shared Subtopic, is the same as Subtopic 720958), subject to scope exceptions that might be stated elsewhere in Topic 958. Subsequently, as Eric reviews the specific guidance in Subtopics 720-35 and 720-958 of Topic 720, he is careful to look for scope exceptions that indicate the some of the guidance in those Subtopics does not apply to not-for-profit entities and/or advertising costs. SUMMARY: To Understand the Scope of Guidance: Look for Subtopic-level scope declarations in Section 15 of the same Subtopic as the guidance. If you find conforming or conforming-with-exceptions scope declarations in Section 15 of a Subtopic, also review Section 15 of the referenced Subtopic(s). Review the entire Section in which the guidance itself is located for exceptions to higher-level scope declarations. LESSON SUMMARY Much of the guidance within the Codification applies to certain entities, transactions, and events but not to others. It is essential that you understand the scope of any guidance that you find in the Codification to avoid misapplying the guidance. Scope information associated with specific guidance may be found in the Section in which the guidance is located; Section 15 of the Subtopic in which the guidance is located; and/or Section 15 of Subtopics other than the Subtopic in which the guidance is located. The System has features to help you navigate quickly within a Subtopic to and from Sections containing scope information, whether you have assembled all of the Subtopic’s Sections on a single page (as covered in...
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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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