Overview
The FASB Accounting Standards Codification (ASC) refers to the set of
authoritative generally accepted accounting principles (GAAP) that the
FASB recognizes. The core purpose of the codification is to establish a
user-friendly way to follow best practices when applying GAAP for
accounting professionals and companies. FASB Codification recommends
that GAAP be applied to nongovernmental entities.
Directions
Use the Master Glossary and FASB Accounting Standards Codification
found in your module resources. The complete FASB Codification will need
to be cited. An example of a complete FASB Codification reference is:
820-10-30-02. Be sure to include citations for any answers you need to
explain or define.
Master Glossary
Define ordinary income (loss).
Define error in previously issued financial statements.
Define earnings per share.
List the three characteristics included in the definition of a publicly traded company.
FASB Codification Research
Cite the complete FASB Codification reference used for the characteristics of related parties.
Describe at least four examples of related parties.
Cite the complete FASB Codification reference used for the explanation of segment reporting.
Explain when segment reporting quantitative thresholds requires a public company to report separate information about an operating segment.
Cite the complete FASB Codification reference used for the explanation of interim reporting relating to SEC-registered companies.
Explain whether it is acceptable for an SEC-registered company to state the impracticality
of determining components of inventory using the gross profit method in
their interim reporting. Consider the following questions to guide your
response:
Is it acceptable?
Would a public company count inventories during each interim period?
Will management be able to make reasonable estimates of inventory estimates? Why or why not?
