What is Codification of Accounting Standards? Describe the structure of codification. Codification of accounting standards reduces the time and effort of researching the vast database of GAAP. Do you agree?

Codification of Accounting Standards refers to a set guideline for the preparation of financial statements, aimed at organizing data into a simplified user access format.

Explanation:

When data from a company becomes so much, there is a need to make documentation and researching the database easier. Codification of Accounting Standards, is aimed at this. Computerized accounting involves codification of accounts. There is a hierarchical relationship between the groups and its components which to be maintained, requires proper codification.

Codification of accounting standards specifically guides the preparation of financial statements in organizations.

STRUCTURE OF CODIFICATION

The standards of codification has a set structure involving topics and subtopics. The structure generally entails:

Codification of accounting standards, reduces the time and effort of researching the database of GAAP. The orderliness that codification gives as well as ensuring the information in the database are kept up to date, makes research in a database as large, easier.

Codification of Accounting Standards is known to be the widely accepting principle of accounting also known as GAAP that is accepted by the FASB for application to non-governmental firms.

The structure of codification

Codification is done in a way that the reporting and accounting standards are simplified to enable easy access by users to every authoritative GAAP in the United States by ensuring that all authoritative literature are provided in an organized manner. All nongovernmental accounting literature and pronouncement were organized under about 90 topics, encompassing standard-setters issued accounting principles within levels A to D in the hierarchical order of the United States GAAP.

Codification of accounting standards helps in the reduction of the time and effort to research the entire database of GAAP because of its reorganization into only 90 accounting topics and each of these topics are displayed using a very accurate, concise, and consistent structure.

Explanation:

Codification of Accounting Standards is known to be the widely accepting principle of accounting also known as GAAP that is accepted by the FASB for application to non-governmental firms.

The structure of codification

Codification is done in a way that the reporting and accounting standards are simplified to enable easy access by users to every authoritative GAAP in the United States by ensuring that all authoritative literature are provided in an organized manner. All nongovernmental accounting literature and pronouncement were organized under about 90 topics, encompassing standard-setters issued accounting principles within levels A to D in the hierarchical order of the United States GAAP.

Codification of accounting standards helps in the reduction of the time and effort to research the entire database of GAAP because of its reorganization into only 90 accounting topics and each of these topics are displayed using a very accurate, concise, and consistent structure.

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!