Accounting Standards Codification

Accounting Standards Codification

Financial Accounting Standards Board

Financial accounting standards board is a private sector, an independent organization which has the main purpose of creation of financial and accounting standards for the organizations. It was being established in the year 1973 and is responsible for laying down various kinds of standards for the organizations. It is being involved in the usage of a transparent process in the issuance of financial accounting standards so that, the investors could work towards making better decisions in the area of working. 

Financial accounting federation works towards providing support to financial accounting standard board. This was being established in the year 1972. This is an independent private sector organization which is being responsible for the areas such as supervision, administration, financing and appointment of government accounting standard board and FASB. The collective purpose of these associations is to make sure that, financial accounting and reporting standards are being improved and useful information is being provided to the investors in a proper and appropriate way.

FASB Accounting Standards Codification

The accounting standard codification was being launched by FASB on July 1, 2009. The codification is being found to be effective in the course of working toward existing accounting standards and making sure that the standards are being followed by the people in the best possible ways. There are a total of 90 topics in the accounting standard codification and those topics are to be taken into account in a proper way. The topics also include Securities and Exchange Commission related topics which also follow the same format as the normal topics being provided. 

Codification is not related to making changes in GAAP but it ensures that a proper structure is being formed and that structure works towards providing a new and well-organized structure. This particular thing is being reorganized to ensure that, there is the reduction in the amount of time being taken for the purpose of working out on a particular issue. The other thing being identified include the tasks of ensuring that, accurate standards are being developed and those standards are being worked upon for the purpose of ensuring that, better areas of doing the tasks are being carried out well without any trouble or issue arising.

Quick Reference Guide

The following is a quick reference guide being provided to the users for the purpose of ensuring that, assistance is being provided regarding the significant listing of codification topics and sections in a proper way. The sections and cross-referencing are crucial in the course of the usage of accounting standards.

Accounting Standards Codification

General Principles

105 - Generally Accepted Accounted Principles


205 - Presentation of Financial

210 - Balance Sheet

215 - Statement of Shareholder

220 - Comprehensive Income

225 - Income Statement

230 - Statement of Cash Flows

235 - Notes to Financial Statements

250 - Accounting Changes

255 - Changing Prices

260 - Earnings Per Share

270 - Interim Reporting

272 - Limited Liability Entities

274 - Personal Financial

275 - Risks and Uncertainties

280 - Segment Reporting


305 - Cash and Cash Equivalents

310 - Receivables

320 - Investments–Debt and Equity Securities                                     

323 - Investments–Equity Method and Joint

325 - Investments–Other

330 - Inventory Broad

340 - Other Assets and Deferred Costs

350 - Intangibles–Goodwill and Other

360 – Property, Plant and Equipment


405 - Liabilities

410 - Asset Retirement and Environmental Obligations

420 - Exit or Disposal Cost

430 - Deferred Revenue

440 - Commitments 

450 - Contingencies

460 - Guarantees


470 - Debt to Financial Statements

480 - Distinguishing Liabilities from Equity


505 - Equity


605 – Revenue  Recognition


705 - Cost of Sales and Services

710 - Compensation–General

712 - Compensation–Nonretirement Postemployment

715 - Compensation–Retirement

718 - Compensation–Stock Compensation

720 - Other

730 - Research and Development

740 - Income Taxes

Broad Transactions

805 - Business Combinations

808 – Collaborative Arrangements

810 - Consolidation

815 - Derivatives and Hedging

820 - Fair Value Measurements and Disclosures

825 - Financial Instruments

830 - Foreign Currency Matters

835 - Interest Plans

840 - Leases

845 - Nonmonetary Transactions Plans

850 - Related Party

852 - Reorganizations

855 - Subsequent

860 - Transfers and Servicing


908 - Airlines

912 - Contractors–Federal Government

915 - Development Stage Entities

920 - Entertainment–Broadcasters

922 - Entertainment–Cable


924 - Entertainment–Casinos

928 - Entertainment–Music                      

930 - Extractive Activities–Mining

932 - Extractive Activities–Oil and Gas

940 - Financial Services–Broker and Dealers

942 - Financial Services–Depository and Lending

944 - Financial Services–Insurance  

946 - Financial Services–Investment Companies

948 - Financial Services–Mortgage Banking

950 - Financial Services–Title Plant  

952 - Franchisors

954 - Health Care

958 - Not-for-Profit Entities

960 - Plan Accounting–Defined Benefit Pension

962 - Plan Accounting–Defined Contribution Pension Presentation

965 - Plan Accounting–Health and Welfare Benefit

970 - Real Estate–General

972 - Real Estate–Common Interest Realty Associations

974 - Real Estate–Real Estate Investment Trusts

976 - Real Estate–Retail Land

978 - Real Estate–Time-Sharing

980 - Regulated Operations

985 - Software

995 - U.S. Steamship Entities


00 - Status

05 - Overview and Background

10 - Objectives

15 - Scope and Scope

20 - Glossary

25 - Recognition

30 - Initial Measurement

35 - Subsequent Measurement

40 – Derecognition

45 - Other Presentation Matters

50 - Disclosure

55 - Implementation Guidance and Illustrations

60 - Relationships

65 - Transition and Open Effective Date Information

70 - Grandfathered Guidance

75 - XBRL Elements

S99 - SEC Material

Basic format of codification


Where, (XXX = Topic YY = Subtopic, ZZ = Section, and PP = Paragraph)

Quick cross reference






ASC 450, Contingencies

FAS 140/FAS 166

ASC 860, Transfers and Servicing

FAS 13

ASC 840, Leases

FAS 141R

ASC 805, Business Combinations

FAS 52

ASC 830, Foreign Currency Matters

FAS 142

ASC 350, Intangibles–Goodwill and Others

FAS 57

ASC 850, Related Party Disclosures

FAS 143

ASC 410, Asset Retirement and Environmental Obligations

FAS 87, 88, 106 and 132R

ASC 715, Compensation–Retirement Benefits

FAS 144

ASC 360, Property, Plant and Equipment

FAS 95

ASC 230, Statement of Cash Flows

FAS 146

ASC 420, Exit or Disposal Cost Obligations

FAS 109/FIN 48

ASC 740, Income Taxes

FAS 150

ASC 480, Distinguishing Liabilities from Equity

FAS 107

ASC 825, Financial Instruments

FAS 157

ASC 820, Fair Value Measurements and Disclosures

FAS 115

ASC 320, Investments–Debt and Equity Securities

FAS 159

ASC 825, Financial Instruments

FAS 123R

ASC 718, Compensation–Stock Compensation ASC 505-50, Equity-Based Payments to Non-Employees

FAS 160 and FIN 46R/FAS 167

ASC 810, Consolidation

FAS 128

ASC 260, Earnings Per Share

FAS 165

ASC 855, Subsequent Events

FAS 130

ASC 220, Comprehensive Income


ASC 470, Debt

FAS 131

FAS 150 ASC 480, Distinguishing Liabilities from Equity FAS 57 ASC 850, Related Party Disclosures FAS 131 ASC 280, Segment Reporting



FAS 133

ASC 815, Derivatives and Hedging



Some important FASB Accounting Standard Codification is as follows:

This codification helps in finding out the accounting and disclosure requirements in the course of loss and gain by way of contingencies. The loss from contingency is being recognized only at the time when the estimated loss is being expected that an asset is being reduced or a liability has increased. The loss contingencies which do not meet the identified criteria are not required to be disclosed in the financial statements of the organization. The gain contingencies are being shown in financial statement at the time when revenue is required to be recognized before the realization occurs. 


a.       ASC 450-10: It makes the establishment of scope and exception regarding topics of contingencies, and provides required definitions and also has the inclusion of links to the standards which appear in the subtopic 450-20 and 450-30. 

b.      ASC 450-20 loss contingency: It includes the following examples of loss contingencies which are being included in the topic being provided below: 


c.       ASC 450-30 Gain Contingencies: This provides guidance in relation to gain contingency in a proper way. These gain contingencies are not normally being included in the financial statements of the organization in the course of disclosures. The revenue is going to be recognized before actual realization. 

Accounting Standard Codification 805 – Business Combination

The accounting is being governed by accounting standard codification 805 at the time of business acquisition. It shows that each of the assets and liabilities being acquired should be recorded at fair market prices. It becomes difficult for the organization in the course of determination of fair prices as an individual cannot just simply look at the statements for finding out fair prices. It is essential to have the assistance of valuation report for the purpose of identification of fair market price of a particular category of asset. 

ASC 805 consists of 5 subtopics

  1. ASC 805-10 overall: It provides guidance in the course of acquisition method and it considers the following areas.



  1. ASC 805-20: this topic makes discussion regarding recognition of the following items.
    1. Identification of assets
    2. Assumption of liabilities
    3. Non-controlling interest
  2. ASC-805-30: It provides assistance regarding guidance and measurement of goodwill or gain from a bargain purchase made.
  3. ASC 805-40: It provides guidance regarding acquisition method adopted to a business combination which is in the form of reverse acquisition.
  4. ASC 805-50: It provides guidance on accounting topics which work towards accounting and reporting tasks which are having similar characteristics in the course of business combinations but do not meet the requirements to be termed as business combinations. The issue arises in this particular area at a particular point of time wherein, business combinations are taking place at a particular point in time. 

Accounting Standards Codification 310: Receivables

This code helps in providing transparency about the credit loss and credit quality in the course of finance receivables. The financial statement user is being helped in the determination of credit risk exposure and calculation of adequacy in the course of its allowance regarding the credit losses being required to be taken into consideration. There are four subtopics of this particular thing. 

  1. ASC 310-10 Overall: It provides guidance regarding income which is yet to be received and notes to the income which is yet to be received on account of credit sales or any other transaction being carried out by the organization. It includes acquisition, development and construction arrangements.
  2. ASC 310-20: This topic provides guidance regarding recognition, measurement, de-recognition, and disclosure of non-refundable fees being identified. Here, the origination costs with lending activities and re-purchase projects would be taken into consideration in the area of doing the working.
  3. ASC 310-30: This is related to the fact that, loans are required to be granted on the basis of proper recognition, measurement and disclosure guidance. This is due to the fact that, originality is being obtained by completion of a particular transfer. The investor would be required to collect the all the payments which are being receivable to him at a particular point in time.
  4. ASC 310-40: It provides guidance regarding measurement, recognition, de-recognition, disclosure and implementation guidance related issues regarding troubled debt restructuring and it is being focused upon records of the creditors at a particular point of time. 

Accounting Standard Codification 820

            This codification is being related to fair value measurement and disclosures. This provides a single framework for the purpose of measurement of fair value and it also requires disclosure regarding fair value. The topic provides information of fair value as exit price and it is being used on the basis of fair value hierarchy. This result in the market based instead of entity-based measurement. Following are being included in the form of sub-topics. 

  1. Defining fair value
  2. Providing a single topic framework for measurement of fair value
  3. Requiring disclosure about fair value measurements. 

Accounting Standard Codification 360 – Property, Plant, and Equipment

It provides information regarding the manner in which disclosures are to be made regarding impairment of long-lived assets and the manner in which long-lived assets are to be disposed of. This makes sure that an impairment loss is being recognized if carrying the amount of the asset is not recoverable. There are two topics in which this particular code is being divided. The topics include the following: 

a.       ASC 360-10 Overall: It provides guidance regarding the manner in which accounting for plant, property, and equipment is to be carried out along with respective depreciation to be accounted for. This topic comprises of impairment and disposal of living assets. 

b.      ASC 360-20 Real Estate Sales: This topic provides guidance regarding the manner in which accounting for sale of real estate property would be carried out. 

Accounting Standard Codification 840 – Leases

            In the course of accounting, there are two different kinds of leases. First of the categories of the lease is in the form of operating lease and another category of the lease is a financial lease. Operating lease does not have a recording of assets and liabilities in financial statements. On the other hand, the capital lease does have the recording of assets and liabilities in the financial statements. It provides the description of the point where the lease is required to be recognized in financial statements of the organization. The following subtopics are being identified in the course of these leases. 

  1. ASC 840-10: Here, the leases are being identified well and the identification of leases is being made on the basis of the category where the lease exists.
  2. ASC 840-20: Here, the leases are being classified as an operating lease by the people who are being involved.
  3. ASC 840-30: Here, the accounting is being made and the lease is being recognized as a capital lease.
  4. ASC 840-40: here, the property is being sold by the owner and lease of the property is being given back to the owner. The accounting guidance is being provided regarding sales back transactions. 

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