FASB ASC 105 GAAP
The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 105 (ASC 105) to address Generally Accepted Accounting Principles, also known as GAAP. The standard discusses what GAAP is, and how it is used in accounting, which entities it applies to, and the hierarchy which exists that tells accountants which standards have more authority than others.
While to many accountants and auditors, GAAP is something that they are so familiar with that they do not need to have a standard to reference, including this provides a nice introduction to the codification. Also, for those less familiar with the hierarchy, it is an easily accessible reference to review.
Check out more high level explanations of the FASB ASC in our Guide to the Accounting Standards Codification!
FASB ASC 310 – Receivables
The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 310 (ASC 310) to address receivables in which businesses incur during the course of business. As a precursor, the standard first defines a receivable and states that it relates to items such as trade accounts receivable, loans, loan syndications, factoring arrangements, and standby letters of credit.
From a high level, the standard discusses how to present each of the different types of receivables in the financial statements. As each of these has its own unique characteristics, they each have special circumstances which must be taken into account.
Check out more high level explanations of the FASB ASC in our Guide to the Accounting Standards Codification!
FASB ASC 340 Accounting for Other Assets and Deferred Costs
The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 340 (ASC 340) to address other assets, such as prepaid expenses, and deferred costs. The main subtopics included in this area are as follows:
- The capitalization of advertising costs
- Insurance Contracts that Do Not Transfer Insurance Risk
When discussing prepaid expenses, they discuss the definition of what a prepaid is and that it includes things such as insurance, interest, rents, taxes, unused royalties, paid advertising not received, and operating supplies. The topic ASC 310 discusses the finer points of how to account for each of the different types of prepaid expenses and deferred costs and how to properly account for them given the certain circumstances that each of them present.
Check out more high level explanations of the FASB ASC in our Guide to the Accounting Standards Codification!