Accounting Standards Codification (ASC)

The single authoritative source of U.S. GAAP established by FASB, organizing accounting standards into a consistent, searchable structure for practitioners.

#Accounting Principles and Standards#Regulatory Framework#Financial Reporting

Accounting Standards Codification (ASC)

The single source of authoritative Generally Accepted Accounting Principles (GAAP) in the United States, established by the Financial Accounting Standards Board (FASB) to standardize U.S. accounting and reporting practices.

For instance, when determining how to account for a lease agreement, a U.S. company would refer to ASC 842, which provides specific guidelines on recognition, measurement, and disclosure requirements for leases.

The ASC organizes thousands of accounting pronouncements into a consistent structure, simplifying research and reducing the risk of applying inconsistent standards. It is organized by topic and includes implementation guidance, making it the essential reference for U.S. financial reporting.