ASC Financial Standards Overview
Staying abreast of changes in financial standards is an important part of managing your organization. This resource outlines recent changes to several accounting laws, the context of those changes, and how they may affect your organization.
Resources for ASC 805, 718 & 350 Codification
Some of the outcomes of Accounting Standards Codification included transitioning three specific standards (FASB 141, 142 and SFAS 123) into what are now referred to as ASC 805, ASC 350, and ASC 718. The following sections provide insight into the impact of the Accounting Standards Codification (ASC):
- ASC 805 (Formerly SFAS 141(R)): ASC 805 aims to enhance the relevancy of purchase price outcomes by using fair value accounting. This is a fundamental shift from the previous approach (under SFAS 141(R)’s predecessor, SFAS 141), that implemented a combination of fair value and historical cost accounting.
- ASC 350 (Formerly SFAS 142): ASC 350 requires an assessment of goodwill impairment at least annually, and an updating of accounting records accordingly.
- ASC 718 (Formerly SFAS 123): The conversion to ASC 718 impacts companies and their compensation of employees. Organizations must now factor the cost of employee compensation regarding share-based payments, increasing the importance of accurate stock valuation.
Process & Impact of ASC
Before selecting valuation services for your organization, the experts at Appraisal Economics recommend learning more about the issues surrounding ASC 805, ASC 718, and ASC 350, including:
- Why were the laws codified and what entities were involved? Learn more
- What were the approaches, steps, and context of the Accounting Standards Codification? Learn more
- What do changes to these laws and standards mean for your business or organization? Learn more
For additional information on these areas, contact the valuation professionals at Appraisal Economics. Our processes adhere to the latest regulations, including the aforementioned areas of the Accounting Standards Codification, so you can be confident in the results our experts, and their decades of combined experience provide.