NEWS RELEASE 07/01/09
FASB Accounting Standards CodificationTM Launches Today
The Codification is now officially the single source of authoritative nongovernmental U.S. GAAP
Norwalk, CT, July 1, 2009—The Financial Accounting Standards Board (FASB) today launched the FASB Accounting Standards CodificationTM as the single source of authoritative nongovernmental U.S. generally accepted accounting principles (GAAP). The Codification is effective for interim and annual periods ending after September 15, 2009. All existing accounting standards documents are superseded as described in FASB Statement No. 168, The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles. All other accounting literature not included in the Codification is nonauthoritative.
“Today’s launch of the Codification represents a milestone in U.S. accounting standards,” states FASB Chairman Robert Herz. “After years of development, this much more efficient, user-friendly method of researching up-to-date solutions has become a reality. I want to thank the many people at the FAF, the FASB, and the hundreds of constituents that contributed to the successful completion of this very major endeavor.”
Starting in January 2008, the FASB made the Codification available for free for an extended verification period, during which time users were urged to provide feedback on the new system to confirm that the Codification accurately reflects existing U.S. GAAP for nongovernmental entities. In December 2008, the FASB publicly announced July 1, 2009, as the date on which the Codification was expected to go live.
The Codification reorganizes the thousands of U.S. GAAP pronouncements into roughly 90 accounting topics and displays all topics using a consistent structure. It also includes relevant Securities and Exchange Commission (SEC) guidance that follows the same topical structure in separate sections in the Codification.
To prepare constituents for the change, the FASB has provided a number of tools and training resources including:
- An online tutorial available on the Codification website at http://asc.fasb.org
- A Notice to Constituents that includes a significant amount of background information at http://asc.fasb.org
- A Codification Question and Answer (Q&A) document at http://www.fasb.org/cod_project/Cod_overview_12-08.pdf
- Various webcasts, including a June 22 webcast entitled Transitioning to FASB Codification on July 1, 2009, and a March 13, 2008 webcast entitled The Move to Codification of U.S. GAAP, both available at http://www.fasb.org/fasb_webcast_series/index.shtml
- “Countdown to Codification Alerts,” a series of weekly e-mails featuring tips to help ease the transition to the new research system, available at http://www.fasb.org/cs/ContentServer?c=Page&pagename=FASB%2FPage%2FSectionPage&cid=1176155830152
- Numerous presentations.
While the Codification does not change GAAP, it introduces a new structure—one that is organized in an easily accessible, user-friendly online research system. The FASB expects that the new system will reduce the amount of time and effort required to research an accounting issue, mitigate the risk of noncompliance with standards through improved usability of the literature, provide accurate information with real-time updates as new standards are released, and assist the FASB with the research efforts required during the standard-setting process.
The FASB Accounting Standards CodificationTM excludes governmental accounting standards. It codified all standards issued by a standard setter within levels A through D of the pre-Codification GAAP hierarchy, with non-SEC content listed below:Financial Accounting Standards Board (FASB)
- Statements (FAS)
- Interpretations (FIN)
- Technical Bulletins (FTB)
- Staff Positions (FSP)
- Staff Implementation Guides (Q&A)
- Appendix D Topics
Derivative Implementation Group (DIG) Issues
Accounting Principles Board (APB) Opinions
Accounting Research Bulletins (ARB)
Accounting Interpretations (AIN)American Institute of Certified Public Accountants (AICPA)
- Statements of Position (SOP)
- Audit and Accounting Guides (AAG)—only incremental accounting guidance
- Practice Bulletins (PB)
- Technical Inquiry Service (TIS)—only for Software Revenue Recognition.
More details about the availability of the Codification, including subscription information and a planned print edition, are available at http://www.fasb.org/cs/ContentServer?c=Page&pagename=FASB%2FPage%2FSectionPage&cid=1176156264264 .
About the Financial Accounting Standards Board
Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.