FASB ASC Questions!

FASB ASC Structure. Each ASC reference is structured as a series of four numbers: a three-digit Topic (the first digit of which represents an Area), a two-digit Subtopic, a twodigit Section, and a two- or three-digit Paragraph. Pensions \& Postemployment Benefits 1. Your client has established a defined contribution pension plan for its employees. The plan requires the company to make contributions for period during which the employee is performing services and reduced contributions for a period after the employee retires. Identify the location in professional standards that indicates how those costs should be accounted for. Accounting Changes \& Error Corrections 2. A cllent wishes to change the method by which it values inventory from FIFO to average because it believes average will provide more relevant information and, as result, is preferable. Identify the location in professional standards that indicates when a reporting entity should change an accounting principle