fasb accounting standards codification

General Principles1

1. 105-10Overall105 Generally Accepted Accounting Principles

   ASC 105-10 establishes the FASB Accounting Standards Codification as the single source of authoritative U.S. GAAP for nongovernmental entities, with SEC rules and interpretive releases (plus SABs and staff announcements) also authoritative for SEC registrants. Everything not in the Codification (other than grandfathered guidance) is nonauthoritative. When no authoritative guidance addresses a transaction, an entity looks first by analogy to authoritative guidance for similar transactions (unless analogy is prohibited) and only then to nonauthoritative sources such as Concepts Statements, IFRS, and prevalent industry practice.