FASB Codification Guide-2

This is straightforward because there are only nine

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Unformatted text preview: m Lesson 1 that systematic browsing to find the answer to a research question begins with identifying the relevant Area(s) of the Codification content. This is straightforward because there are only nine Areas to choose from. Here are some time-saving tips for identifying Areas that are relevant to your research questions: The General Principles Area relates to broad conceptual matters. The Presentation Area addresses how information is presented in the financial statements. It does not address other aspects of financial accounting such as recognition, measurement, or derecognition for individual financial statement accounts. The Assets, Liabilities, and Equity Areas contain guidance about specific individual balance sheet accounts (e.g., cash, accounts payable, additional paidin capital). The Revenue and Expenses Areas contain guidance about specific individual income statement accounts (e.g., sales revenue, employee compensation). The Broad Transactions Area contains guidance about to multiple financial statement accounts. Look Now You do not have to memorize the nine Areas, and you do not have to click or type anything in the System to be reminded of them. The Areas are listed on the left-hand side of every page, near the top of the page: General Principles Presentation Assets Liabilities Equity Revenue Expenses Broad Transactions Industry The Industry Area contains guidance about to a specific industry or type of activity. Identifying Relevant Topics Once you have identified an Area that is relevant to your research question, the next step in systematic browsing is to identify the relevant Topic(s) within that Area. Each Area contains one or more Topics. Each Topic is identified by a unique threedigit number and a title. The first digit of a Topic’s numerical identifier signifies the Area to which the Topic belongs (i.e., Topic numbers beginning with ―1‖ are in the General Principles Area, Topic numbers beginning with ―2‖ are in the Presentation Area, etc.). Also notice in the list of Topics below that there...
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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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