Chapter 4 Financial Accounting Research Tools

Using a database Define information needed Define information needed Determine sources to search Determine sources to search Use appropriate search methods Use appropriate search methods View results and manage the information (full text or citation) View results and manage the information (full text or citation) Communicate the research results Communicate the research results

Codification Comprehensive, but not complete, research on accounting issues for the private sector Comprehensive, but not complete, research on accounting issues for the private sector Ninety topical areas of prior level A-D GAAP Ninety topical areas of prior level A-D GAAP Master glossary Master glossary Limited SEC content for user ease (Regulation S-X, Financial Reporting Releases, Accounting Series Releases, Interpretive Releases, Staff Accounting Bulletins, EITF Topic D, and SEC Staff Observer Comments) Limited SEC content for user ease (Regulation S-X, Financial Reporting Releases, Accounting Series Releases, Interpretive Releases, Staff Accounting Bulletins, EITF Topic D, and SEC Staff Observer Comments)

Codification- Continued Codification supersedes all pre-existing non-governmental accounting and reporting standards. Codification supersedes all pre-existing non-governmental accounting and reporting standards. Four main topical areas: Four main topical areas: Presentation (codes ) Presentation (codes ) Financial statement accounts (codes ) Financial statement accounts (codes ) Assets Assets Liabilities Liabilities Equity Equity Revenue Revenue Expenses Expenses Broad transactions (805 – 835) Broad transactions (805 – 835) Industries (905 – 999) Industries (905 – 999) The topical areas are further refined into subtopics, sections and subsections (see figure 4-2) The topical areas are further refined into subtopics, sections and subsections (see figure 4-2)

The Codification Research Process Methods of searching Methods of searching Topical category search Topical category search Master glossary search Master glossary search Search inquiries Search inquiries When should the researcher stop searching? When should the researcher stop searching? Consider primary vs. secondary sources Consider primary vs. secondary sources Consider authoritative vs. non-authoritative sources Consider authoritative vs. non-authoritative sources

SEC SEC accounting is not the same as GAAP accounting SEC accounting is not the same as GAAP accounting SEC follows legal hierarchy to be discussed in a later chapter SEC follows legal hierarchy to be discussed in a later chapter SEC has statutory authority to establish accounting rules and regulations for public companies (companies must file 10K’s, 8-K’s, 10Q’s) SEC has statutory authority to establish accounting rules and regulations for public companies (companies must file 10K’s, 8-K’s, 10Q’s) Regulation S-X – Form and Content of Financial Statements Regulation S-X – Form and Content of Financial Statements Regulation S-K – Integrated Disclosure Rules Regulation S-K – Integrated Disclosure Rules

SEC- continued Financial Reporting Releases (FRRs) – accounting principles that update Reg S-X and Reg S-K Financial Reporting Releases (FRRs) – accounting principles that update Reg S-X and Reg S-K Accounting and Enforcement Releases (AAER’s) Accounting and Enforcement Releases (AAER’s) Accounting Series Releases (ASRs) – predecessor to FRRs Accounting Series Releases (ASRs) – predecessor to FRRs SEC Staff Policy – not formally approved but published in interpretations. SAB’s similar to FASB technical bulletins SEC Staff Policy – not formally approved but published in interpretations. SAB’s similar to FASB technical bulletins See Figure 4-8 for SEC hierarchy See Figure 4-8 for SEC hierarchy

SEC- continued Accessing SEC filings and regulations Accessing SEC filings and regulations Website (sec.gov) Website (sec.gov) Company websites Company websites SEC’s next generation EDGAR system SEC’s next generation EDGAR system Commercial databases Commercial databases