FASB ASC Research: A Deep Dive into FASB ASC Guidelines and Standards

This assignment focuses on researching various aspects of the FASB Accounting Standards Codification (ASC). It covers comprehensive income as defined in Concepts Statement 3, highlighting the board's preference for this term over 'earning'. The research also addresses net income, particularly concerning the impact of exchange rate changes on foreign operations. Furthermore, it delves into APB Opinion No. 9, focusing on the allocation of income tax related to intangible drilling and development costs. The assignment includes an examination of discontinued operations, referencing the 2015 FASB update that revised the application guidelines. Additionally, it explores accounting changes, including changes in accounting principles and estimates, as outlined in ASC 250. Finally, the research covers earnings per share (EPS) as per ASC 260, emphasizing the calculation, presentation, and disclosure requirements for companies with publicly held ordinary stocks.

Running head: Accounting 1
Accounting
2/3/2019

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FASB ASC 6‐1 Comprehensive Income
The expression comprehensive income was established in the concepts statement 3. It
was issued in year 1980. However, the expression comprehensive income was used to address
the similar idea as earning in FASB concept statement number one, the objective of the financial
reporting by business ventures, which was addressed in year 1978 (FASB, 2018). The board
members do not chose to use earning in the concept statement 3. The members of board selected
the comprehensive income to use. The reason is that this desired to reserve the earning for
probable utilization to select the diverse concept, which was narrow in comparison of the
comprehensive income (Palmrose & Kinney Jr, 2018).
FASB ASC 6‐2 Net Income
The statement number 52 addresses the financial effect of the change in exchange rate on
the operations, which is comparatively self-contained and incorporated in the foreign nation
related to net investment in the operations. Conversion adjustment arises from the consolidation
of foreign operations do not involve in cash flow. They are not involved in net income (Du,
McEnroe & Stevens, 2016).
FASB ASC 6‐3 APB Opinion No. 9
The Statement number 9 addresses the allocation of income tax of intangible drill and
development cost, which are deductible in resolving the taxable income. However, they are
capitalized in deciding the accounting incomes before the tax. It is required by statement 9 that
entities should allocate the tax effects of intangible drill and development cost, which takes entry
o deciding the taxable income and accounting income before tax in various periods. This

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Statement 9 also renders the suggestion for the entities that select to involve excess statutory
reduction in the computation of inter phase allocation of tax (Zeff, 2016).
FASB ASC 6‐4 Discontinued Operations
In year 2015, new FASB accounting standard comes into effect. This would remove from
U.S. GAAP the difficult application guideline for the discontinued operations and establish the
new standard for the better understanding. As per this principle, only disposal of business which
present strategic shift that have the main effects on operation of entity and financial result will be
noted in discontinued operation. A discontinued operation may be defined as the business and
the part of the discontinued business.
FASB ASC 6‐5 Accounting Changes
ASC 250 renders the guidelines on accounting and to report the changes related to
accounting. The accounting changes can be referring as changes in the accounting principles and
the accounting estimates. These accounting changes may be the changes in reporting entities.
The subtopic states that retrospective implementation as needed methods for noting the changes
in accounting principles in lack of unambiguous transition needs particular the newly accepted
accounting principles.
FASB ASC 6‐6 Earnings per Share

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ASC 260 renders the guidelines on calculation, representation, and requirement to
disclose the EPS for companies with publicly held ordinary stocks or possible ordinary stocks.
Statement number 128 states the standards for calculation and presentation of EPS (FASB,
2018). This Statement makes simpler the standard for calculating the EPS earlier found in APB
Opinion No. 15, EPS, and makes them equivalent to worldwide standard of earning per share.
Basic earning per share does not include dilution (Nichols, Betancourt & Scott, 2017).

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References
Du, N., McEnroe, J. E., & Stevens, K. (2016). Why isn't comprehensive income
comprehensible? The FASB and the IASB have made headway in dealing with OCI
issues, but it's time to establish conceptual definitions. Strategic Finance, 98(5), 46-54.
FASB (2018). Accounting standard update. Retrieved from:
<https://fasb.org/jsp/FASB/Document_C/DocumentPage?
cid=1176170041017&acceptedDisclaimer=true >
FASB (2018). Summary of statement no. 128. Retrieved from:
<https://www.fasb.org/summary/stsum128.shtml/>
Nichols, N., Betancourt, L., & Scott, I. (2017). The FASB Simplifies the Accounting for Share‐
Based Payments. Journal of Corporate Accounting & Finance, 28(4), 8-19.
Palmrose, Z. V., & Kinney Jr, W. R. (2018). Auditor and FASB responsibilities for representing
underlying economics—What US standards actually say. Accounting Horizons, 32(3),
83-90.
Zeff, S. A. (2016). The Influence of Price Waterhouse & Co. on the CAP, the APB, and in the
Early Years on the FASB. Accounting Historians Journal, 43(2), 129-140.

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