Why Was Codification Needed?

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Why was codification needed? Codification was needed to clarify entry to ASC, refine accuracy of analysis, reduce risk of non-compliance, organize the research procedure, maintain problem-solving updates and collaborate with IFRS merging What is the goal of codification? The Codification’s goal is to clarify the company of thousands of U.S. authoritative accounting announcements published by diverse standard-setters. Therefore, to accomplish this objective, the FASB sponsored a project to incorporate and typically adapt all related accounting publication announced by the standard-setters of the U.S. in conjunction with those of the FASB, the Emerging Issues Task Force (EITF) and the American Institute of Certified Public Accountants…show more content…
What is the difference between the “general topics landing page,” the “industry topics landing page” and the “subtopics landing page?” General topics landing page including industry topics landing page prepare a list of entities on particular subtopics and the capacity to combine all subtopics. Therefore, subtopics landing page is identical to general topics landing page excluding the table of content is extended to the area of the subtopics and connect all sections in a subtopic where you can handle research and acknowledge response. What is “pending content?” Pending content is when a new standard is created and is not yet completely efficient for all entities; the FASB inserts it in the Codification as Pending Content. How is SEC content differentiated from FASB content? SEC content is differentiated from FASB content in the Section equivalent to the Codification content of hierarchy. However, the number of SEC’s section is classified as FASB’s but it is anticipated by the letter “S”. 2. Log into the codification database and perform a search on the following terms and answer the related questions: a. Warranty expense: i. How many results did you get? After the search the results are twenty-six (26) ii. Click on “605 Revenue Recognition > 20 Services> 25 Recognition” and summarize what is said in subsection 25-3. It’s about the continued warranty or output supply. These products ’retailers are required
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