Name
FASB Paper
ACC 497 Week 1
The idea of keeping good records of finances, property, or materials date back to just
some of the earliest societies and branches over various different civilizations and generations.
The history and evolution of accounting is strictly routed through that of society. Thus, each
society has their specific need of accounting, which closely indicates the methods and structure
of the system followed. Ultimately, due to the development of corporate business, there is a need
to establish a formal method which arose from the modern accounting system which is active
today. Over time, the Financial Accounting Standards Board or FASB became relative to
accounting standards. However, the FASB is not the primary group which has the responsibility
to declare or clarify accounting standards; coincidentally, the confusion leads to attempting to
comply with generally accepted accounting principles.
Nevertheless, in order to simplify the process and bring order, the FASB established an
Accounting Standards Codification. The FASB ASC is an overhaul of accounting and reporting
standards designed to simplify user access to select US authorities which are generally accepted
accounting principles (GAAP). Furthermore, they are provided with the authoritative
literature with a typically organized structure. In summary, the FASB ASC has an authoritative
and complete source on GAAP. The purpose of ASC is basically to simplify the user access to all
authoritative US GAAP´s within one spot. Furthermore, the ASC makes an effort to provide
updated information on the GAAP. Through a simplified and updated research system, the FASB
ASC is able to improve their accuracy with accounting practices.
The accounting standards codification in itself are composed of nine sections, including
accounting principles, presentation, assets, liabilities, equity, revenue, expenses, broad
transactions, and industry. Primarily, accounting principles were generally accepted as an
overview of the GAAP. Second of all, the presentation presented itself as a section which regards
to the general presentation of financial statements. Finally, the assets section, which normally
covers cash, cash equivalents, inventory, and various other assets. Basically, each of the sections
gave the audience guidance on the related field of accounting. The final two sections include a
broad transaction and industry, which is where the topics primarily fall under simple concepts
from the previous sections and other transactions from other industries.
Accounting in general has evolved naturally along with society´s evolution based on the
need for record keeping so the difficulties apply of accounting rules and regulations. Through
various groups there is a founded facilitation which provides structure and unification in practice,
and the overall outcome was an overwhelming amount of publication from multiple
sources. Normally, along with evolution, the need presents a solution so yielding the FASB ASC,
which served to once more regulate accounting by establishing an up to date codification of US
generally accepted accounting principles.
References
American Institute of CPAs. (2010). FASB accounting standards codification.
Retrieved from
http://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/
AcctgFinRptg/AcctgFinRptgGuidance/Pages/FASBAccountingStandards
Codification.aspx
Schroeder, R. G. (2011). The deveolpment of accounting theory. In Financial
accounting theory and analysis (pp. 1-30). Retrieved from
https://ecampus.phoenix.edu/content/eBookLibrary2/content/TOC.aspx
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