# ASC 105-10-05: Generally Accepted Accounting Principles — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/105/10/#05-overview-and-background) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T22:51:03.039Z to 2026-09-09T22:51:03.039Z Record version: sha256:8823c6387a65bb3877b4ace56d4ae14ef900f99339b1c8da50742c021ea1eca2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 105-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/105/10/#05-overview-and-background) SEC content: no ##### [105-10-05-1](https://asc.understandingaccounting.org/asc/105/10/#105-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:03.039Z to 2026-09-09T22:51:03.039Z Record version: sha256:34b39da87cb1cb4a959dad37ec29edaa6d796f7dedc9487e2f88493e97f10c30 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic establishes the _Financial Accounting Standards Board (FASB) Accounting Standards Codification_® (Codification) as the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by [nongovernmental entities](https://asc.understandingaccounting.org/glossary/n/#nongovernmental-entity "An entity that is not required to issue financial reports in accordance with guidance promulgated by the Governmental Accounting Standards Board or the Federal Accounting Standards Advisory Board."). Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. In addition to the SEC's rules and interpretive releases, the SEC staff issues Staff Accounting Bulletins that represent practices followed by the staff in administering SEC disclosure requirements, and it utilizes SEC Staff Announcements and Observer comments made at Emerging Issues Task Force meetings to publicly announce its views on certain accounting issues for SEC registrants. ##### [105-10-05-2](https://asc.understandingaccounting.org/asc/105/10/#105-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:03.039Z to 2026-09-09T22:51:03.039Z Record version: sha256:e328a6f9ec263abbc79a8ea22ff83a2302eb634f0823114f516d1677c3d6d91e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the guidance for a transaction or event is not specified within a source of authoritative GAAP for that entity, an entity shall first consider accounting principles for similar transactions or events within a source of authoritative GAAP for that entity and then consider nonauthoritative guidance from other sources. An entity shall not follow the accounting treatment specified in accounting guidance for similar transactions or events in cases in which those accounting principles either prohibit the application of the accounting treatment to the particular transaction or event or indicate that the accounting treatment should not be applied by analogy. ##### [105-10-05-3](https://asc.understandingaccounting.org/asc/105/10/#105-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:03.039Z to 2026-09-09T22:51:03.039Z Record version: sha256:063bca2a6ba1853344bb57c17f87addbd5457e6c13108a2009cdbfb8ead104cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accounting and financial reporting practices not included in the Codification are nonauthoritative. Sources of nonauthoritative accounting guidance and literature include, for example, the following: 1. a Practices that are widely recognized and prevalent either generally or in the industry 2. b FASB Concepts Statements 3. c American Institute of Certified Public Accountants (AICPA) Issues Papers 4. d International Financial Reporting Standards of the International Accounting Standards Board 5. e Pronouncements of professional associations or regulatory agencies 6. f Technical Information Service Inquiries and Replies included in AICPA Technical Practice Aids 7. g Accounting textbooks, handbooks, and articles. The appropriateness of other sources of accounting guidance depends on its relevance to particular circumstances, the specificity of the guidance, the general recognition of the issuer or author as an authority, and the extent of its use in practice. ##### [105-10-05-4](https://asc.understandingaccounting.org/asc/105/10/#105-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:03.039Z to 2026-09-09T22:51:03.039Z Record version: sha256:138e0f2284ce189cab86699de4509f2fe3b3af2ba7eea31c2295a0777a5383bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains the authoritative standards that are applicable to both public nongovernmental entities and [nonpublic](https://asc.understandingaccounting.org/glossary/n/#nonpublic-entity "Any entity that does not meet any of the following conditions: Its debt or equity securities trade in a public market either on a stock exchange (domestic or foreign) or in an over-the-counter market, including securities quoted only locally or regionally. It is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It files with a regulatory agency in preparation for the sale of any class of debt or equity securities in a public market. It is required to file or furnish financial statements with the Securities and Exchange Commission. It is controlled by an entity covered by criteria (a) through (d).") nongovernmental entities. Content contained in the SEC Sections (designated by an “S” preceding the Section number) is provided for convenience and relates only to SEC registrants. The SEC Sections do not contain the entire population of SEC rules, regulations, interpretive releases, and staff guidance. Content in the SEC Sections is expected to change over time, and there may be delays between SEC and staff changes to guidance and Accounting Standards Updates. The Codification does not replace or affect guidance issued by the SEC or its staff for public entities in their filings with the SEC. ##### [105-10-05-5](https://asc.understandingaccounting.org/asc/105/10/#105-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:03.039Z to 2026-09-09T22:51:03.039Z Record version: sha256:c266eb841cd6e3961255bc9c61128ea19f88ec081c00e1a3ff79433527816f43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The FASB does not consider Accounting Standards Updates as authoritative in their own right. Instead, new Accounting Standards Updates serve only to update the Codification, provide background information about the guidance, and provide the bases for conclusions on the change(s) in the Codification. All nongrandfathered non-SEC accounting guidance not included in the Codification is superseded and deemed nonauthoritative. ##### [105-10-05-6](https://asc.understandingaccounting.org/asc/105/10/#105-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:03.039Z to 2026-09-09T22:51:03.039Z Record version: sha256:b5613f6428aabe5b0aaf4b98b2857bec9e20a74488570e195323f14f81b5380e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The provisions of the Codification need not be applied to immaterial items.