FASB Accounting Standards Codification Manual

Codification

FASB Accounting Standards Codification

The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. The Codification is effective for interim and annual periods ending after September 15, 2009.

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Notice to Constituents

100 | General Principles

800 | Broad Transactions

900 | Industry

Master Glossary

Notice to Constituents

ASC 105 Generally Accepted Accounting Principles

This Topic establishes the FASB Accounting Standards Codification (Codification) as the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities.

ASC 205 Presentation of Financial Statements

This Topic contains three subtopics (Overall, Discontinued Operations, and Liquidation Basis of Accounting).

ASC 210 Balance Sheet

This Topic contains two Subtopics (Overall and Offsetting).

ASC 215 Statement of Shareholder Equity

This Topic has been moved to Topic 505, Equity, as part of the FASB’s project on Codification improvements.

ASC 220 Income Statement — Reporting Comprehensive Income

This Topic notes that its purpose is to establish “standards for reporting and presentation of comprehensive income and its components in a full set of general-purpose financial statements.”

ASC 225 Income Statement

This Topic has been superseded by Maintenance Update 2017-19 and Accounting Standards Update 2015-01.

ASC 230 Statement of Cash Flows

This Topic provides guidance on reporting cash flows in general purpose financial statements and provides information about where to find guidance related to industry-specific issues.

ASC 235 Notes to Financial Statements

This Topic discusses guidance on the “content and usefulness of disclosure by an entity of the accounting policies judged by management to be most appropriate to fairly present the entity’s financial statements.”

ASC 250 Accounting Changes and Error Corrections

This Topic provides guidance on the accounting for and reporting of accounting changes and error corrections.

ASC 255 Changing Prices

This Topic “provides guidance on reporting the effects of changing prices, or inflation, on financial statements of business entities. The reporting addresses both general inflation and price changes of certain assets.”

ASC 260 Earnings per Share

This Topic provides guidance on the “computation, presentation, and disclosure requirements for earnings per share (EPS) for entities with publicly held common stock or potential common stock.”

ASC 270 Interim Reporting

This Topic “clarifies the application of accounting principles and reporting practices to interim financial information, including interim financial statements and summarized interim financial data of publicly traded companies issued for external reporting purposes.”

ASC 272 Limited Liability Entities

This Topic addresses the reporting guidance applicable to limited liability entities organized in the U.S. that prepare financial statements in accordance with U.S. GAAP.

ASC 274 Personal Financial Statements

This Topic “provides guidance on how the estimated current values of assets and the estimated current amounts of liabilities are determined and applied in the preparation and presentation of personal financial statements.”

ASC 275 Risks and Uncertainties

This Topic notes that “specified criteria serve to screen the host of risks and uncertainties that affect every entity so that required disclosures are limited to matters significant to a particular entity.”

ASC 280 Segment Reporting

This Topic provides guidance “on how to report certain information about operating segments in complete sets of financial statements of the public entity and in condensed financial statements of interim periods issued to shareholders.”

ASC 305 Cash and Cash Equivalents

This Topic has been moved to Topic 210, Balance Sheet, as part of the FASB’s project on Codification improvements.

ASC 310 Receivables

This Topic provides general guidance for receivables and notes that receivables arise from credit sales, loans, or other transactions.

ASC 320 Investments — Debt Securities

This Topic provides detailed guidance on the accounting and reporting of “investments in equity securities that have readily determinable fair values” and “all investments in debt securities.”

ASC 321 Investments — Equity Securities

This Topic provides detailed guidance for “investments in equity securities and other ownership interests in an entity, including investments in partnerships, unincorporated joint ventures, and limited liability companies as if those other ownership interests are equity securities.”

ASC 323 Investments — Equity Method and Joint Ventures

This Topic comprises three Subtopics (Overall; Partnerships, Joint Ventures, and Limited Liability Entities; and Income Taxes).

ASC 325 Investments — Other

This Topic comprises four Subtopics (Overall, Cost Method Investments, Investments in Insurance Contracts, and Beneficial Interests in Securitized Financial Assets).

ASC 326 Financial Instruments — Credit Losses

This Topic provides guidance on how an entity should measure credit losses on financial instruments and comprises three Subtopics (Overall, Measured at Amortized Cost, and Available-for-Sale Debt Securities).

ASC 330 Inventory

This Topic provides guidance on the accounting and reporting of inventory in the financial statements.

ASC 340 Other Assets and Deferred Costs

This Topic comprises four Subtopics (Overall, Capitalized Advertising Costs, Insurance Contracts that Do Not Transfer Insurance Risk, and Other Assets and Deferred Costs — Contracts With Customers).

ASC 350 Intangibles — Goodwill and Other

This Topic comprises five Subtopics (Overall, Goodwill, General Intangibles Other than Goodwill, Internal-Use Software, and Website Development Costs).

ASC 360 Property, Plant, and Equipment

This Topic comprises two Subtopics (Overall and Real Estate Sales).

ASC 405 Liabilities

This Topic comprises four Subtopics (Overall, Extinguishments of Liabilities, Insurance-Related Assessments, and Obligations Resulting from Joint and Several Liability Arrangements).

ASC 410 Asset Retirement and Environmental Obligations

This Topic comprises three Subtopics (Overall, Asset Retirement Obligations, and Environmental Obligations).

ASC 420 Exit or Disposal Cost Obligations

This Topic "addresses financial accounting and reporting for costs associated with exit or disposal activities. An exit activity includes but is not limited to a restructuring."

ASC 430 Deferred Revenue

This Topic simply provides a link to the guidance in the Codification on deferred revenue related to vendor sales incentives, which is in ASC 605-50.

ASC 440 Commitments

This Topic provides guidance for general commitments, such as “unused letters of credit; preferred stock dividends in arrears; commitments such as those for plant acquisition; and obligations to reduce debts, maintain working capital, or restrict dividends.”

ASC 450 Contingencies

This Topic outlines the accounting and disclosure requirements for loss and gain contingencies.

ASC 460 Guarantees

This Topic “establishes the accounting and disclosure requirements to be met by a guarantor for certain guarantees issued and outstanding.”

ASC 470 Debt

This Topic comprises six Subtopics (Overall, Debt With Conversion and Other Options, Participating Mortgage Loans, Product Financing Arrangements, Modifications and Extinguishments, and Troubled Debt Restructurings by Debtors).

ASC 480 Distinguishing Liabilities From Equity

This Topic “establishes standards for how an issuer classifies and measures in its statement of financial position certain financial instruments with characteristics of both liabilities and equity.”

ASC 505 Equity

This Topic provides guidance on several specific elements of transactions, accounts, and financial instruments that are classified as components of equity as well as overall general guidance related to equity.

ASC 605 Revenue Recognition

This Topic provides guidance for transaction-specific revenue recognition and certain matters related to revenue-generating activities, such as the sale of products, the rendering of services, and the gain or loss on involuntary conversions of nonmonetary assets to monetary assets, that are not addressed specifically in other Topics.

ASC 606 Revenue From Contracts With Customers

This Topic provides guidance on recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

ASC 610 Other Income

This Topic comprises three Subtopics (Overall, Gains and Losses From the Derecognition of Nonfinancial Assets, and Gains and Losses on Involuntary Conversions).

ASC 705 Cost of Sales and Services

This Topic notes that it “only provides links to guidance on accounting for the cost of sales and services in other applicable Subtopics as the asset liability model used in the Codification generally results in the inclusion of that guidance in other Topics.”

ASC 710 Compensation — General

This Topic specifically covers compensated absences, deferred compensation arrangements, lump-sum payments under union contracts, and rabbi trusts.

ASC 712 Compensation — Nonretirement Postemployment Benefits

This Topic provides guidance on nonretirement postemployment benefits, including termination benefits and other postemployment benefits provided to former and inactive employees.

ASC 715 Compensation — Retirement Benefits

This Topic comprises six Subtopics (Overall, Defined Benefit Plans — General, Defined Benefit Plans — Pension, Defined Benefit Plans — Other Postretirement, Defined Contribution Plans, and Multiemployer Plans).

ASC 718 Compensation — Stock Compensation

This Topic comprises six Subtopics (Overall, Awards Classified as Equity, Awards Classified as Liabilities, Employee Stock Ownership Plans, and Income Taxes).

ASC 720 Other Expenses

This Topic comprises eight Subtopics (Overall, Start-Up Costs, Insurance Costs, Contributions Made, Real and Personal Property Taxes, Advertising Costs, Electronic Equipment Waste Obligations, Business and Technology Reengineering, and Fees Paid to the Federal Government by Pharmaceutical Manufacturers and Health Insurers).

ASC 730 Research and Development

This Topic comprises two Subtopics (Overall and Research and Development Arrangements).

ASC 740 Income Taxes

This Topic comprises four Subtopics (Overall, Intraperiod Tax Allocation, Other Considerations or Special Areas, and Interim Reporting).

ASC 805 Business Combinations

This Topic comprises six Subtopics (Overall; Identifiable Assets and Liabilities, and Any Noncontrolling Interest; Goodwill or Gain from Bargain Purchase, Including Consideration Transferred; Reverse Acquisitions; Related Issues; Income Taxes).

ASC 808 Collaborative Arrangements

This Topic provides guidance for income statement presentation, classification, and disclosures related to collaborative arrangements.

ASC 810 Consolidation

This Topic comprises three Subtopics (Overall, Control of Partnerships and Similar Entities, and Research and Development Arrangements).

ASC 815 Derivatives and Hedging

This Topic provides comprehensive guidance on derivative and hedging transactions.

ASC 820 Fair Value Measurement

This Topic applies to U.S. GAAP that require or permit fair value measurements or disclosures and provides a single framework for measuring fair value and requires disclosures about fair value measurement.

ASC 825 Financial Instruments

This Topic comprises two Subtopics (Overall and Registration Payment Arrangements).

ASC 830 Foreign Currency Matters

This Topic comprises five Subtopics (Overall, Foreign Currency Transactions, Translation of Financial Statements, Statement of Cash Flows, and Income Taxes).

ASC 832 Government Assistance

This Topic provides guidance on disclosures for various forms of government assistance.

ASC 835 Interest

This Topic comprises three Subtopics (Overall, Capitalization of Interest, and Imputation of Interest).

ASC 840 Leases

This Topic comprises four Subtopics (Overall, Operating Leases, Capital Leases, and Sale-Leaseback Transactions).

ASC 842 Leases

This Topic provides the requirements of financial accounting and reporting for lessees and lessors and comprises five Subtopics (Overall, Lessee, Lessor, Sale and Leaseback Transactions, and Leveraged Leases Arrangements).

ASC 845 Nonmonetary Transactions

This Topic notes that the “amount of monetary assets or liabilities exchanged generally provides an objective basis for measuring the cost of nonmonetary assets or services received by an entity as well as for measuring gain or loss on nonmonetary assets transferred from an entity.”

ASC 848 Reference Rate Reform

This Topic provides optional expedients for applying the guidance in certain Topics or Industry Subtopics for contract modifications or other situations affected by reference rate reform.

ASC 850 Related Party Disclosures

This Topic provides “disclosure requirements for related party transactions and certain common control relationships.”

ASC 852 Reorganizations

This Topic comprises three Subtopics (Overall, Quasi-Reorganizations, and Income Taxes).

ASC 853 Service Concession Arrangements

This Topic “provides guidance for reporting entities when they enter into a service concession arrangement with a public sector grantor who controls or has the ability to modify or approve the services that the operating entity must provide with the infrastructure, to whom it must provide them, and at what price (which could be set within a specified range).”

ASC 855 Subsequent Events

This Topic “provides guidance on principles and requirements for subsequent events.”

ASC 860 Transfers and Servicing

This Topic comprises five Subtopics (Overall, Sales of Financial Assets, Secured Borrowing and Collateral, Transfers to Qualifying Special Purpose Entities, and Servicing Assets and Liabilities).

ASC 905 Agriculture

ASC 908 Airlines

ASC 910 Contractors — Construction

ASC 912 Contractors — Federal Government

ASC 915 Development Stage Entities

ASC 920 Entertainment — Broadcasters

ASC 922 Entertainment — Cable Television

ASC 924 Entertainment — Casino

ASC 926 Entertainment — Films

ASC 928 Entertainment — Music

ASC 930 Extractive Activities — Mining

ASC 932 Extractive Activities — Oil and Gas

ASC 940 Financial Services — Brokers and Dealers

ASC 942 Financial Services — Depository and Lending

ASC 944 Financial Services — Insurance

ASC 946 Financial Services — Investment Companies

ASC 948 Financial Services — Mortgage Banking

ASC 950 Financial Services — Title Plant

ASC 952 Franchisors

ASC 954 Health Care Entities

ASC 958 Not-for-Profit Entities

ASC 960 Plan Accounting — Defined Benefit Pension Plans

ASC 962 Plan Accounting — Defined Contribution Pension Plans

ASC 965 Plan Accounting — Health and Welfare Benefit Plans

ASC 970 Real Estate — General

ASC 972 Real Estate — Common Interest Realty Associations

ASC 974 Real Estate — Real Estate Investment Trusts

ASC 976 Real Estate — Retail Land

ASC 978 Real Estate — Time-Sharing Activities

ASC 980 Regulated Operations

ASC 985 Software

ASC 995 U.S. Steamship Entities

Master Glossary

The Codification’s categories are organized by Topic, Subtopic, Section, and paragraph, each with a numerical designation. The Sections in every Subtopic are labeled uniformly, as follows:

00	Status	40	Derecognition
05	Overview and Background	45	Other Presentation Matters
10	Objectives	50	Disclosure
15	Scope and Scope Exceptions	55	Implementation Guidance and Illustrations
20	Glossary	60	Relationships
25	Recognition	65	Transition and Open Effective Date Information
30	Initial Measurement	70	Grandfathered Guidance
32	Measurement	75	XBRL Elements
35	Subsequent Measurement	S99	SEC Material

Accounting Updates

The Codification is updated via Accounting Standards Updates (ASUs). These are assigned a number that corresponds to the year of the ASU’s issuance and its sequential order (e.g., the first ASU issued in 2010 was 2010-01). ASUs replace accounting changes that historically were issued as FASB Statements, FASB Interpretations, FASB Staff Positions, or other types of FASB standards. ASUs contain a background and basis for conclusions as well as a marked draft of any changes to existing guidance. The new guidance is labeled “Pending Content” in the Codification, and the superseded guidance will not be removed until the guidance in the ASU is effective for all entities. ASUs are available in PDF format on the FASB’s Web site.