The GAAP hierarchy ranks the relative authority of accounting pronouncements issued by the FASB and its predecessors, the AICPA, and (for public companies) the SEC. Currently, in the United States, the GAAP hierarchy is set out in AICPA Statement on Auditing Standards No. 69 The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles. FASB proposes that a company using US GAAP may need to look to IFRSs if an issue is dealt with in IASB standards but not in the US accounting literature. Furthermore, FASB's exposure draft notes that "the IASB accords its conceptual guidance a higher standing in its hierarchy than that which the present GAAP hierarchy accords the guidance in the FASB Concepts Statements. Because the FASB's and the IASB's goal is to converge their concepts and standards, the [FASB] acknowledges that it will need to consider whether and how to converge the hierarchy for its accounting literature with that of the IASB as part of the conceptual framework project that the Board is conducting jointly with the IASB." Comment deadline is 27 June 2005. Click to:

• Download the Exposure Draft from the FASB website.
• (PDF 26k).