Statement of Financial Position Classification of Income Tax Accounts.
Topics
Topics represent a collection of related guidance. For example, Leases is a Topic. The Topics correlate very closely to standards issued by the International Accounting Standards Board (IASB).
The Topics reside in four main areas as follows:
1. General Principles (Topic Codes 105–199). These Topics relate to broad conceptual matters. Topics include Generally Accepted Accounting Principles.
2. Presentation (Topic Codes 205–299). These Topics relate only to presentation matters and do not address recognition, measurement, and derecognition matters. Topics include
Income Statement, Balance Sheet, Earnings per Share, and so forth.
3. Financial Statement Accounts (Topic Codes 305–799). The Codification organizes
Topics in a financial statement order including Assets, Liabilities, Equity, Revenue, and
Expenses. Topics include Receivables, Revenue Recognition, Inventory, and so forth.
4. Broad Transactions (Topic Codes 805–899) . These Topics relate to multiple financial statement accounts and are generally transaction-oriented. Topics include Business Combinations, Derivatives, Nonmonetary Transactions, and so forth.
5. Industry (Topic Codes 905–999). These Topics relate to accounting that is unique to an industry or type of activity. Topics include Airlines, Software, Real Estate, and so forth.
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Industry and Broad Transaction Topics
The following approach was applied for placing content into the Codification Topics:
1. First filter–Industry content. If a piece of content related solely to a single industry, the content was placed in that particular industry.
2. Second filter–Broad transaction content. If a piece of content did not relate to a single industry and it related to a broad transaction, the content was placed in that broad transaction.
3. For all other content that did not meet the industry or broad transaction filters, the content was authored in a general Topic.
One of the goals of the Codification was to eliminate redundant content, which can result in user confusion and is difficult to maintain over time. Instead of proliferating redundancy by including general guidance in the Industry Topics, Industry Topics only contain incremental industryspecific guidance. The entities within the scope of the industry must follow the industry-specific guidance and all other relevant guidance contained in other Topics that does not conflict with the industry guidance.
To provide consistency, the Codification segregates Industry Topics into Subtopics that mirror the general Topic structure. This provides multiple ways to access the content—by Industry
Topic or by general Topic.
Subtopics
Subtopics represent subsets of a Topic and are generally distinguished by type or by scope. For example, Operating Leases and Capital Leases are two Subtopics of the Leases Topic distinguished by type of lease. Each Topic contains an Overall Subtopic that generally represents the pervasive guidance for the Topic. Each additional Subtopic represents incremental or unique guidance not contained in the Overall Subtopic. In some cases, the Overall Subtopic represents overall guidance. In other cases, the Overall Subtopic may not contain overall guidance but, instead, may represent miscellaneous content that does not fit into another Subtopic.
Subtopics unique to a Topic use classification numbers between 00 and 99. In addition, Topics— primarily Industry Topics—may contain Subtopics that mirror the general Topics.
For example, the general Receivables Topic is 310, the general Inventory Topic is 330, and the Agriculture
Topic is 905. The Agriculture Topic may include Subtopics for Receivables, Inventory, and so forth. The Subtopic classification number is the classification number of the related Topic. In this case:
1. Agriculture—Receivables is 905-310.
2. Agriculture—Inventory is 905-330.
For additional details, see the discussion under the heading titled Intersecting content.
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Sections
Sections represent the nature of the content in a Subtopic such as Recognition, Measurement,
Disclosure, and so forth. Every Subtopic uses the same Sections. If there is no content for a
Section then the Section will not display. See the discussion under the heading titled Joining and
combining content for a discussion of how you can join Sections for multiple Subtopics (such as
the Disclosure Sections for all Subtopics within the Revenue Recognition Topic).
Similar to Topics, Sections correlate very closely with Sections of individual International
Financial Reporting Standards.
The Sections of each Subtopic are as follows:
XXX-YY-ZZ where XXX = Topic, YY = Subtopic, ZZ = Section
XXX-YY-00 Status
XXX-YY-05 Overview and Background
XXX-YY-10 Objectives
XXX-YY-15 Scope and Scope Exceptions
XXX-YY-20 Glossary
XXX-YY-25 Recognition
XXX-YY-30 Initial Measurement
XXX-YY-35 Subsequent Measurement
XXX-YY-40 Derecognition
XXX-YY-45 Other Presentation Matters
XXX-YY-50 Disclosure
XXX-YY-55 Implementation Guidance and Illustrations
XXX-YY-60 Relationships
XXX-YY-65 Transition and Open Effective Date Information
XXX-YY-70 Grandfathered Guidance
XXX-YY-75 XBRL Definitions
The following is a description of the Sections:
XXX-YY-00 Status
This Section includes references to the Accounting Standards Updates that affect the
Subtopic. For example, the Section includes information similar to the following:
1. Paragraph 310-10-25-6 added by Accounting Standards Update 2010-003.
2. Paragraph 360-10-35-7 modified by Accounting Standards Update 2009-002.
3. Paragraph 810-10-50-3 superseded by Accounting Standards Update 2009-023.
XXX-YY-05 Overview and Background
This Section provides a general overview and background on the Subtopic. It does not provide historical background of the standard setter, due process, or similar items. It may contain certain material generally considered useful to a user to understand the typical October 2, 2009 (v 3.0)
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XXX-YY-10 Objectives
When available, the Objectives Section states the high-level objectives of the Subtopic but does not discuss the main principles of the Subtopic.
XXX-YY-15 Scope and Scope Exceptions
This Section outlines the items (for example, the entities, transactions, instruments, or events) to which the guidance in the Subtopic does or does not apply. It does not contain actual accounting or reporting guidance (for example, subsequent measurement).
In many cases, the underlying standards did not provide scope language related to entities. During the Codification process, the FASB concluded that unless otherwise indicated, the content applies to all entities.
In cases where a Topic contains multiple Subtopics, the Overall Subtopic typically contains the pervasive scope for the entire Topic, including the other Subtopics. The remaining Subtopics then refer to the Overall Subtopic and address the specific exceptions from the pervasive Overall Scope. Users must be aware that the Overall Scope Section is not a summary but, instead, represents the scope for the Overall Subtopic and the baseline for the other Subtopics, which may include different scope inclusions or exclusions.
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The following figure illustrates the concept of pervasive scope:
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Certain Topics represent a combination of disparate Subtopics with differing scopes. In these cases, a pervasive scope is not used. An example is the Other Expenses Topic. The figure below illustrates the concept of independent scopes:
Independent Scopes
Overall Subtopic Subtopic 1 Subtopic 2
OVERALL SCOPE
Entities include:
AB
C
Entities exclude:
D
G
Transactions include:
123
Transactions exclude:
56
SUBTOPIC 1 SCOPE
Entities include:
DEF
Transactions include:
45
SUBTOPIC 2 SCOPE
Entities include:
GH
Transactions include:
6
Transactions exclude:
3
In many circumstances, guidance codified in a Subtopic may apply equally to all items within the Subtopic’s scope. However, certain codified guidance within the Subtopic may apply only to a subset of items (such as restricted scope guidance). In those circumstances, the restricted scope language was placed with the restricted scope guidance. For example, if a certain measurement standard was allowed only for a specific transaction, then the restricted scope would appear only in the corresponding measurement Section together with the specific measurement requirement.
As described in the discussion under the heading titled Intersecting content, the majority of Industry Subtopics intersect with General Topics. In these cases, users must be cognizant of the Industry Topic scope and the related General Topic scope.
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XXX-YY-20 Glossary
This Section contains all the glossary terms used in the Subtopic. In many cases, the terms originated from the Glossary of the original standard. In other cases, the term was derived from definitional text embedded in the original standard.
The Master Glossary contains all terms identified as glossary terms throughout the Codification. Clicking on any term in the Master Glossary will display where the term is used. The Master Glossary may contain identical terms with different definitions, some of which may not be appropriate for a particular Subtopic. For any particular Subtopic, users should only use the glossary terms included in the particular Subtopic Glossary Section (Section 20).
XXX-YY-25 Recognition
This Section addresses the criteria, timing, and location (within the financial statements) for recognizing a particular item.
XXX-YY-30 Initial Measurement
This Section addresses the criteria and amounts used to measure a particular item at date of recognition. In many cases, this Section may be empty because the initial standards did not include initial measurement.
XXX-YY-35 Subsequent Measurement
This Section relates almost exclusively to assets, liabilities, and equity. It addresses the criteria and amounts used to measure a particular asset, liability, or equity item subsequent to the date of recognition (for example, impairment, fair value changes, depreciation, amortization, and similar items).
XXX-YY-40 Derecognition
This Section relates almost exclusively to assets, liabilities, and equity. It addresses the criteria, the method to determine the amount of basis, and the timing to be used when derecognizing a particular asset, liability, or equity item for purposes of determining gain or loss, if any.
XXX-YY-45 Other Presentation Matters
This Section includes other presentation matters related to the Subtopic. Some examples include:
1. Specific balance sheet classification
2. Specific cash flow requirements
3. Specific effect on earnings per share.
XXX-YY-50 Disclosure
This Section contains specific disclosure requirements for a Subtopic. It does not include general disclosure requirements that may reside in the Notes to Financial Statement Topic and other general presentation Topics. This Section may include references to general disclosure requirements that encompass the items addressed by the Subtopic. For example, the Receivables Subtopic contains a link to the general financial instrument disclosure requirements that relate to receivables.
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XXX-YY-55 Implementation Guidance and Illustrations
This Section contains implementation guidance and illustrations, which are an integral part of the standards. The Codification separates implementation guidance and illustrations from the main body of the standards but provides references and links in both directions.
This Section provides guidance relating to the standards in simplified and generalized situations. Applying the standards to actual situations requires judgment, and the implementation guidance and illustrations are intended to aid in making those judgments.
The implementation guidance and illustrations assume that all items addressed are material to the entity. Because the implementation guidance and illustrations cannot address all possible variations, users must consider carefully the facts and circumstances in actual situations when applying the provisions of the Subtopic.
XXX-YY-60 Relationships
This Section includes references to other Subtopics that may contain guidance related to the Subtopic. The references point to content in another Topic that is the object of the other Topic or the material otherwise relates to the particular Topic. For example, the Income Taxes Topic may have discussions of LIFO reserves as the object of an illustration or example. In this case, the Relationships Section of the Inventory Topic would refer to the LIFO material in the relevant Income Taxes Subtopic.
The relationships provide simple references to the relevant content but do not include a complete description of the relationship. In addition, the Section does not contain requirements.
While the goal is to include as many relevant relationships as possible, users should not assume that the lists are exhaustive.
XXX-YY-65 Transition and Open Effective Date Information
This Section contains references to paragraphs within the Subtopic that have open transition guidance.
The transition guidance will appear in an emphasized manner in the text of the standards Sections. After the transition period lapses, the Codification Research System will remove the outdated guidance and the emphasis on the new content.
[NOTE:The Codification was written with an assumed effective date of December 31,
2008. As a result, transition and open effective date guidance for dates before December 31, 2008, is not in the Codification (despite the fact that the effective date may not have occurred yet) because of its imminent removal as authoritative content. As such, there is no transition or effective date information in the Codification for such guidance. Users can search the original standards.]
XXX-YY-70 Grandfathered Guidance
This Section contains descriptions, references, and transition periods for content grandfathered after July 1, 2009, by an Accounting Standards Update. See Codification Section 105-10-70 and the grandfathered content section of this Notice for more information about grandfathered materials.
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XXX-YY-75 XBRL Definitions
This Section contains the related XBRL names for the Subtopic.
Securities and Exchange Commission (SEC) Sections
As noted in the section titled Standards issued by the SEC, SEC content is included for reference to improve the usefulness of the Codification for public companies. The system attempts to embed relevant SEC content for reference in the same Topics and Subtopics as all other content. The goal was to place SEC content within applicable Sections, using unique SEC Section codes to distinguish the content. An “S” precedes the SEC Section codes.
SEC content has developed through different mechanisms and is not as easily codified using the same model as the non-SEC content without modifying existing rules, regulations, and so forth. Instead, all original SEC content remains essentially intact in the S99-SEC Materials Sections, except that SEC Observer comments made at EITF meetings are no longer shown with the related material from EITF Issues, and some
Observer comments have been edited for appropriate context. The other SEC Sections contain links to the relevant content within the S99-SEC Materials Sections.
The Codification Research System will display the SEC content in separate Section following non-SEC content.
Subsections
Subsections are a further segregation of a Section and, except for the General Subsection, occur in a limited number of cases. Each Section has at least one General Subsection. A Section may contain additional Subsections as a means of filtering content related to multiple Sections of the same Subtopic (see the discussion under the heading titled Joining and combining content for more details). Unlike a Section, a Subsection is not numbered. A Subsection differs from a paragraph heading because the Codification Research System provides a feature to combine all Subsection content for a Topic, for example, the Receivables—Overall Subtopic includes Subsections for Acquisition, Development, and Construction Arrangements. This allows a user to combine all content related to acquisition, development, and construction arrangements.
Paragraph groups
Paragraph groups represent a series of related paragraphs under the same paragraph heading. The
Topic structure allows paragraph groups to be subordinated to other paragraph groups because of dependencies. As a result, the paragraph groups are presented in a hierarchy. Within the
Codification, one or more “>” symbols precede each paragraph group heading. The number of
“>” symbols identifies the hierarchy among paragraph groups. For example, the following illustrates the hierarchy of the paragraph group headings:
> Statement of Financial Position Classification of Income Tax Accounts
> > Deferred Tax Accounts
> > > Deferred Tax Accounts Related to an Asset or Liability.
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Paragraphs
To ensure accurate links, paragraph numbers will not change over time. The content of a paragraph may be amended, but the paragraph number will remain constant.
New paragraphs will be added using a letter extension. For example, a new paragraph inserted between paragraphs 50-5 and 50-6 would be 50-5A.
Statement of Financial Position Classification of Income Tax Accounts