Accounting Series Release

Definition

Accounting Series Release (ASR):

Accounting Series Releases (ASRs) were official documents issued by the U.S. Securities and Exchange Commission (SEC) that provided guidance, interpretations, and information on various accounting and financial reporting matters. Over the years, the term “Financial Reporting Releases” (FRRs) began to replace ASRs, although both serve similar functions. These releases played a critical role in shaping financial reporting practices and ensuring transparent and accurate public financial disclosures by companies.

Overview

Purpose: To provide regulatory guidance on accounting and financial reporting standards.
Issuer: U.S. Securities and Exchange Commission (SEC).
Scope: Policies, procedures, and interpretations on financial reporting standards codified by the Financial Accounting Standards Board (FASB) and other regulatory requirements.

Historical Context and Modern Relevance

Originally termed as Accounting Series Releases, these documents were foundational in establishing various accounting principles that are adhered to by public companies for accurate and transparent reporting. Over time, the terminology evolved, and these releases started being referred to as Financial Reporting Releases (FRRs) to better reflect their focus on broader financial reporting issues.

Examples

ASR No. 150: Issued in 1973, this ASR addressed the determination of materiality for financial statement purposes, providing guidance on what constitutes material information that must be disclosed to investors.
ASR No. 173: Released in 1975, this ASR provided guidelines on the accounting for leases, influencing the development of FASB standards that followed.
FRR No. 77: Although not an ASR, an FRR like No. 77, issued in the modern context, provides updates on financial reporting obligations related to contemporary issues such as cybersecurity.

Frequently Asked Questions (FAQs)

1. Are ASRs still being issued by the SEC?

No, the term Accounting Series Release (ASR) has been largely replaced by Financial Reporting Releases (FRRs). The SEC now uses FRRs to publish guidance on financial reporting issues.

2. How do ASRs differ from Financial Reporting Releases (FRRs)?

While ASRs focused more on specific accounting practices and principles, FRRs encompass a broader aspect of financial reporting including updates on regulation changes, interpretations of standards, and disclosure requirements.

3. Where can I find historical ASRs?

Historical ASRs can often be found in the SEC’s electronic databases and archives, as well as in specialized accounting and financial reporting literature.

4. Who benefits most from referring to ASRs?

Corporate accountants, auditors, financial analysts, regulators, and anyone involved in the preparation or analysis of financial statements can benefit from understanding ASRs.

5. Are ASRs applicable for private companies?

While ASRs primarily target public companies under the SEC’s jurisdiction, the principles and guidelines can be informative for private companies, especially those preparing for public offerings.

Financial Reporting Release (FRR): The modern term for releases published by the SEC, providing guidance on financial reporting standards.
FASB (Financial Accounting Standards Board): The organization responsible for establishing financial accounting and reporting standards in the United States.
Materiality: A principle in accounting that dictates the importance of information in influencing the economic decisions of users.
Disclosure: The act of providing supplementary financial and non-financial information in the financial statements.

Online References

Suggested Books for Further Studies

“Financial Reporting and Analysis” by Charles H. Gibson
- A comprehensive text offering insights into financial reporting standards and their applications.
“International Financial Reporting Standards (IFRS): Practical Implementation Guide and Workbook” by Abbas Ali Mirza, Graham Holt, Magnus Orrell
- Provides practical guidance on implementing accounting principles in accordance with international standards, offering a comparative view with US GAAP.
“Intermediate Accounting” by Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
- An essential resource for understanding the principles and applications of financial accounting and reporting.

Accounting Basics: “Accounting Series Release” Fundamentals Quiz

### "Accounting Series Release" primarily provided guidelines for which of the following? - [ ] Taxation codes - [x] Financial reporting and accounting standards - [ ] Human resource management - [ ] Marketing strategies > **Explanation:** ASRs were intended to provide guidelines on financial reporting and accounting standards, issued by the U.S. SEC. ### Who issued the Accounting Series Releases? - [ ] The Federal Reserve - [ ] The Internal Revenue Service (IRS) - [x] The U.S. Securities and Exchange Commission (SEC) - [ ] The Department of the Treasury > **Explanation:** The U.S. Securities and Exchange Commission (SEC) issued ASRs to provide regulatory guidance on financial reporting practices. ### What type of companies were ASRs primarily targeted at? - [x] Public companies - [ ] Private companies - [ ] Non-profit organizations - [ ] Government agencies > **Explanation:** ASRs were primarily aimed at public companies under the SEC's jurisdiction to ensure transparent and accurate financial reporting. ### Which term replaced Accounting Series Releases in modern usage? - [ ] FASB Statements - [ ] GAAP Guidelines - [x] Financial Reporting Releases (FRRs) - [ ] IFRS Bulletins > **Explanation:** The term Financial Reporting Releases (FRRs) replaced ASRs in modern usage to provide broader guidance on financial reporting issues. ### Can historical Accounting Series Releases still be accessed? - [x] Yes, through SEC’s electronic databases and archives - [ ] No, they are no longer available in any form - [ ] Only by private subscription services - [ ] Only for academic research purposes > **Explanation:** Historical ASRs can be accessed through the SEC’s electronic databases and archives. ### Why were ASRs issued by the SEC? - [ ] To outline taxation requirements for businesses - [ ] To manage monetary policy - [x] To provide guidance on financial reporting and accounting standards - [ ] To regulate international trade > **Explanation:** ASRs were issued to provide official SEC guidance on financial reporting and accounting standards. ### Are Financial Reporting Releases (FRRs) similar in function to ASRs? - [x] Yes, they serve similar functions with updated terminologies - [ ] No, they serve completely different purposes - [ ] FRRs are obsoleted by a new series - [ ] FRRs only focus on fraud detection > **Explanation:** FRRs serve similar functions to ASRs with an expanded focus and updated terminology. ### Which organization influences the standards discussed in ASRs? - [ ] IRS - [ ] Department of Commerce - [x] Financial Accounting Standards Board (FASB) - [ ] Federal Deposit Insurance Corporation (FDIC) > **Explanation:** The Financial Accounting Standards Board (FASB) sets the guidelines and standards referenced in ASRs. ### What is an example of an issue discussed in an ASR? - [ ] Currency exchange rates - [x] Materiality determination in financial statements - [ ] Employee benefit programs - [ ] Environmental regulations > **Explanation:** An example of an issue discussed in an ASR is the determination of materiality for financial statements. ### Which body regulates the issuance of FRRs? - [x] U.S. Securities and Exchange Commission (SEC) - [ ] U.S. Department of Justice - [ ] Federal Trade Commission (FTC) - [ ] State government agencies > **Explanation:** The U.S. Securities and Exchange Commission (SEC) regulates the issuance of Financial Reporting Releases (FRRs).

Thank you for exploring the detailed aspect of Accounting Series Releases and engaging with our informative quiz. Continue expanding your knowledge on financial reporting and regulatory standards!