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Appendix A: Professional literature

The PwC guides provide in-depth accounting and financial reporting guidance for various topics, as
outlined in the preface to this guide. The PwC guides summarize the applicable accounting literature,
including relevant references to and excerpts from the FASB’s Accounting Standards Codification (the
Codification). They also provide our insights and perspectives, interpretative and application
guidance, illustrative examples, and discussion on emerging practice issues. The PwC guides
supplement the authoritative accounting literature. This appendix provides further information on
authoritative US generally accepted accounting principles.

Professional literature

The Codification is the primary source of authoritative US financial accounting and reporting
standards (US GAAP) for nongovernmental reporting entities (hereinafter referred to as “reporting
entities”). Additionally, guidance issued by the SEC is a source of authoritative guidance for SEC
registrants.

Updates and amendments to the Codification arising out of the FASB’s standard-setting processes are
communicated through Accounting Standards Updates (ASUs). The Codification is updated
concurrent with the release of a new ASU, or shortly thereafter. PwC has developed a FASB
Accounting Standards Codification Quick Reference Guide, which is available on CFOdirect. The
quick reference guide explains the structure of the Codification, including examples of the citation
format, how new authoritative guidance is released and incorporated into the Codification, and where
to locate other PwC information and resources on the Codification. The quick reference guide also
includes listings of the Codification’s “Topics” and “Sections” and a list of frequently referenced
accounting standards and the corresponding Codification Topics where they now primarily reside.

In the absence of guidance for a transaction or event within a source of authoritative US GAAP (e.g.,
the Codification and SEC guidance), a reporting entity should first consider accounting principles for
similar transactions or events within a source of authoritative US GAAP for that reporting entity and
then consider non-authoritative guidance from other sources. Sources of non-authoritative accounting
guidance and literature include:

□ FASB Concepts Statements

□ AICPA Issues Papers

□ International Financial Reporting Standards issued by the International Accounting Standards
Board

□ Pronouncements of other professional associations or regulatory agencies

□ Technical Information Service Inquiries and Replies included in AICPA Technical Practice Aids

□ PwC guides

□ Accounting textbooks, guides, handbooks, and articles

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