.

Consequently, why was the FASB Codification created?

The three primary goals of the codification are "simplify user access by codifying all authoritative U.S. GAAP in one spot, ensure that the codification content accurately represented authoritative U.S. GAAP as of July 1, 2009, and to create a codification research system that is up to date for the released results of

Similarly, what is the need for codification of accounts? A proper codification requires a systematic grouping of accounts. The major groups or heads could be Assets, Liabilities, Revenues and Expenses. The sub- groups or minor heads could be capital, non-current liabilities, current assets, sales and so on.

Subsequently, question is, what are the three main reasons to pursue a codification?

The FASB had three primary goals in developing the Codification: 1. Simplify user access by codifying all authoritative US GAAP in one spot. 2. Ensure that the codified content accurately represented authoritative US GAAP as of July 1, 2009.

What does FASB stand for?

Financial Accounting Standards Board