The Accounting Standards Codification (ASC) is a comprehensive framework that organizes and simplifies accounting standards in the United States. Developed by the Financial Accounting Standards Board (FASB), it serves as the single source of authoritative U.S. generally accepted accounting principles (GAAP). This system helps accountants and financial professionals easily locate relevant accounting guidance, ensuring consistency and clarity in financial reporting. By categorizing standards into a structured format, the ASC enhances the understanding of complex accounting rules. It covers various topics, such as revenue recognition, leases, and financial instruments, making it easier for users to navigate and apply the appropriate standards in their financial statements.