FASB

need to edit my paper per the below feedback from professor:

Please include a title page, with a Running head

Use main title headings, at least one for each of the three scenarios and one for a background and one for the conclusion.

Your paper should be between an average of 5 pages minimum, excluding references and title pages.

Consider at least 1/2 page to 3/4 per scenario, add depth to your response.

Us APA format, 6th edition throughout, double spacing, indentations, etc.

Be sure that you address clearly how you address each of the 3 scenarios, i.e., 1) researching a particular accounting topic for a client, 2) development of a scholarly publication for a peer reviewed journal, and 3) evaluating the economic implications of a particular accounting standard.

Add/adjust your references as necessary to cover these 3 scenarios.

here is the paper: The FASB Accounting Standards Codification

The Financial Accounting Standards Board (FASB) is an independent not-for-profit organization establishing financial and accounting standards of reporting for not-for-profit entities and companies. The Connecticut-based organization was established in 1973 to succeed and carry on the mission of the Accounting Principles Board. The FASB is the entity authorized to establish and interpret US GAAP or generally accepted accounting principles for not-for-profit entities and private and public firms. The FASB is recognized by the Securities and Exchange Commission and state accounting boards as the standard setter for public companies (Kenton, 2020).
It is the organization’s mission to develop better financial reporting and accounting standards that provide useful information to users of financial statements. The organization also provide guidance to stakeholders on the effective interpretation and application of the standards. In 2009, the FASB Accounting Standards Codification (ASC) was launched by the Financial Accounting Foundation. The online Codification is an accounting research tool designed to be the sole source of authoritative US GAAP.
The Codification, according to FAF, organizes the various pronouncements into accounting topics displayed using a consistent structure. The FASB Codification website includes relevant SEC guidelines on the topics and provide a free basic view version and a comprehensive professional view version which is subject to a paid subscription. As stated by Briggs, this project aims to lessen time and effort needed to resolve accounting issues, reduce noncompliance risk through enhance usability of the various pronouncements and give precise information through real-time updates of new accounting standards (Briggs, 2009).
With the help of the online codification, financial preparers and users could rely on the website to readily locate guidance for accounting treatments of complex and novel transactions. As an example, with the continually evolving design of financial instruments, public and private companies increasingly enter into creative financing transactions that results into complex transactions. A technology startup which is not yet able to generate sufficient funds to finance ongoing operations would resort to issuance of warrants to attract more investments as part of their negotiations with investors. When they modify these warrants that still remain as equity instruments, it raises the question on how to treat the effect of this modification.
The company could look into the Codification to locate provisions that would address this particular transaction regarding freestanding equity. If there is no specific GAAP pertaining to the modification, the company then would turn to analogous Codifications that would reflect the substance of the transaction. The Company could also raise its concern to FASB to provide guidance to the appropriate accounting treatment. This is in fact the subject of the recent EITF Issue 19-C which the company could use to resolve the ambiguity when the final update is released.
With the proliferation of this complex and novel transactions, the users and preparers of the financial statements would be interested in assessing whether FASB is functioning as intended in improving accounting standards that reflect the changing nature of transactions. The ASC contains FASB updates through thy years. The Emerging Issues Task Force database shows the developments addressed regarding novel issues and the time frame of their response. With ASC, FASB’s performance could be evaluated on whether it is providing timely guidance to the various stakeholders.
The task of the FASB and its EITF body in addressing this emerging issues is to provide consistent accounting guidelines before divergent practices due to different interpretations become prevalent across industries. It’s goal is not develop easier standards but to establish better accounting that would reflect the economic substance of the transaction. This would improve the transparency of financial statements that various stakeholders could rely on.
For instance, with the advent of technology, the online platform has become the new setting of businesses across the world. This has created interconnected transactions across entities producing unique situations. For example, a company could offer advertisement space on its website for third-party customers and earn advertising revenue. The company can then decide to contract with other websites and offer more linkage to its customers to generate more revenue. It would result to a situation where the company offers advertisement space which belongs to another entity while directly receiving full compensation from the customer.
Here, the company’s added revenue stems from a service performed by another. It raises the question on how to properly recognize this incremental income. Treating gross amount as earnings would present higher revenue in its income statement that does not reflect the services provided by the company. However, recognizing the net amount as revenue would not coincide with its cash flow statement. It would then be desirable for the company to find the appropriate accounting treatment compliant with GAAP provisions. In this situation, the company could search the Codification for guidance on how to substantiate this transaction, which would be under ASC 606 on Revenue from Contracts with Customers.
In conclusion, the FASB Accounting Standards Codification is a valuable research tool that is readily accessible to the users and preparers of the financial statements. It is available online to provide quick reference to properly guide stakeholders in resolving accounting issues and to promote easier compliance with the GAAP provisions. The FASB addresses the concerns of different industries by having open meetings which the public can gain access to through the online website. The website also provides recent pronouncements on Updates and relevant guidelines by other regulatory bodies. The FASB ASC serves as a comprehensive platform that provide its users better understanding of the numerous accounting principles.