What is the FASB Codification System? What is the purpose of the FASB Codification System? How can it be used to make better accounting decisions?The FASB codification system is a single source of authoritative, nongovernmental accounting standards in accordance with GAAP to be applied to all interim and annual periods that end after September 15, 2009. The system was set up to restructure all US GAAPstandards by topic into a single authoritative codification. It also modified the standard settingprocess with an emphasis on updating the codification. The codification is a more efficient, user friendly way of researching current solutions. The codification system reorganized the thousands of GAAP pronouncements into about 90 accounting topics, and displays the information in a consistent format. The purpose of the codification system is to simplify the research process. It eliminates the need to research multiple sources, and helps the FASB take out differences in standards especially when applying them to international accounting standards. The system can be used to make better accounting decisions by focusing on the codification text. This way a user will know the any revisions in the codification when new standards are set. The system helps to eliminate delays and helps to integrate the codification. There exists a searchable retrieval system that has more functions and provides results in a timelier manner.Reference: http://www.fasb.org/jsp/FASB/FASBContent_C/NewsPage&cid=1176156318458Response 2The FASB Codification System is the single source of authoritative nongovernmental U.S. GAAP that is effective for all interim and annual periods that ends after September 2009. TheCodification System is to restructure all U.S. GAAP literature by topic into single authoritative codification and modify the standard setting process to focus on updating the codification. The purpose of the codification system is to organize accounting principles and laws to help reduce the time needed to research accounting topics. The codification system can be used as a research tool to help streamline the research process and allow people to know if the contents of the research are accurate by comparing them to current research. It helps with accounting decisions by giving up to date and accurate accounting information so that delays can be avoided when doing research. It also helps with accounting decisions by having a searchable retrieval system to provide greater functionality and timeliness to
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