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The three primary goals of the codification are "simplify user access by codifying all authoritative U.S. GAAP in one spot, ensure that the codification content accurately represented authoritative U.S. GAAP as of July 1, 2009, and to create a codification research system that is up-to-date for the released results of standard-setting activity."
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In 1979, the American National Standards Institute chartered the Accredited Standards Committee (ASC) X12 to develop uniform standards for interindustry electronic exchange of business transactions-electronic data interchange (EDI)
Under the revenue recognition principle, when a company received an advance payment, it is not recognized as revenue but as liabilities in the form of deferred income (which requires the company to perform certain obligations), until the following conditions are met:
ASC X9, responsible for standards for the financial services industry; ASC X12, responsible for standards for business-to-business electronic data interchange; Aeronautical Systems Center, inactivated Air Force product center; Airflow Sciences Corporation, an engineering consulting company in Livonia, Michigan
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The VSOE feature is intended for use by United States companies to maintain GAAP compliance with the American Institute of Certified Public Accountants (AICPA) Statement of Position 97-2 (SOP 97-2) and SOP 98-9 (the residual method).
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