(FASB ASC) is a collection of authoritative generally accepted accounting principles (GAAP) used in the United States. It is issued and maintained by the Financial Accounting Standards Board (FASB). The FASB ASC is the single source of authoritative GAAP other than SEC-issued financial reporting standards. It is organized by topic, and each topic is further divided into subtopics. The FASB ASC is updated periodically to reflect changes in accounting standards and accepted practices.

Accounting Standards Codification

At the WE accounting practices, the Codification of Accounting Standards is the only current US source Generally Accepted Accounting Principles (GAAP). It is maintained by Financial Accounting Standards Board (FASB).

Codification of FASB Accounting Standards

Coding is valid for interim and annual periods ended after September 15, 2009. All previous accounting standards documents have been superseded as described in FASB Statement No. 168, The FASB Codification of Accounting Standards and the Hierarchy of Generally Accepted Accounting Principles. Accounting literature not included in the Codification is not authoritative.

The Codification reorganizes the thousands of US GAAP pronouncements into nearly 90 accounting topics and displays all topics using a consistent structure. Also includes relevant United States Securities and Exchange Commission (SEC) which follows the same topical structure in separate sections in the Codification.

To prepare constituents for change, the FASB has provided a range of training tools and resources.

The Codification did not change GAAP, but introduced a new structure, organized in an easy-to-access and user-friendly online search system. The FASB expected the system to reduce the amount of time and effort required to research accounting issues, mitigate the risk of non-compliance with standards through better usability of the literature, provide accurate information with real-time updates as new standards are introduced. released and assist the FASB with necessary research efforts during the standard-setting process.


The three main objectives of the coding are “to simplify user access by coding all official US GAAP in one place, to ensure that the coding content accurately represents official US GAAP as of July 1, 2009, and to create a coding research system that is up to date for the published results of the standard setting activity.” Coding was done to facilitate the location of accounting standards through a single database.

Leading up to the coding process

Before the Codification, accounting standards lacked a consistent and logical structure. Over the past 50 years, US GAAP has consisted of thousands of standards with various standards makers. Old US GAAP was difficult to interpret, and the complexity of the standards made it difficult for users to keep up. Problems with the old standards increased financial reporting risk and led to inefficiencies that increased costs. The Financial Accounting Standards Advisory Board expressed concerns due to the increased financial reporting guidance of the former US GAAP standards, and the FASB responded by launching a new project to codify the standards. The project was approved in September 2004 by the Trustees of the Financial Accounting Foundation.

Public access to coding

All users must register to view any encoding information. Coding allows a free basic view or paid professional view to the public. Professional Vision requires an annual subscription of up to $940, depending on concurrent users. Discounts can be applied to multiple concurrent users. Coding is used by accounting and reporting professionals, analysts, and investors.


Each ASC reference is structured as a series of four numbers separated by hyphens: a three-digit Topic (whose first digit represents an Area), a two-digit Subtopic, a two-digit Section, and either a two- or three-digit Section. Paragraph digit.

Topics Series Area
100 General principles
200 Presentation
300 Active
400 Passive
500 Equity
600 Recipe
700 Expenses
800 broad transactions
900 Industry

Subtopic 10 is always “General”.

Section numbers are standardized across topics (not all subtopics have all sections):

section number section title
00 Status
05 Overview and background
10 Goals
15 Scope and Scope Exceptions
20 Glossary
25 Recognition
30 initial measurement
35 subsequent measurement
40 misrecognition
45 Other presentation matters
50 Disclosure
55 Implementation Guide and Illustrations
60 Relationships
65 Transition Information and Effective Date of Opening
70 Ancestral Guidance
75 XBRL elements

For example, 210-10-20 is Balance Sheet, Glossary. 605-40-25-1 is Revenue Recognition, Profit and Loss, Recognition, first paragraph.

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