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in this video were going to discuss the accounting standards codification otherwise known as the ASC so the ASC is the source of all the authoritative accounting principles and rules that US companies have to follow when they issue their financial statements so its the central repository of all the information related to US GAAP and it was created in 2009 to establish one level of GAAP one single level of all the generally accepted accounting principles that pertain to US companies and before we had the ASC we basically had this thing where we had a hierarchy we had a hierarchy of GAAP we had these different types of things that some were more authoritative than others and so we have this hierarchy and we say ok well whats the most authoritative source of GAAP and so forth and we actually had an accounting standard that was issued by the FASB statement on financial accounting standard number 162 that explain the entire higher hierarchy so it could be very confusing and what the ASC
