FASB codification nears public release for testing
05 Nov 2007
The US Financial Accounting Standards Board (FASB) will release the FASB Accounting Standards Codification™ (Codification) for verification by constituents in late 2007 or early 2008. During the one-year verification period, the FASB will make the Codification available through a new web-based research system to solicit feedback from constituents to confirm that the Codification accurately reflects existing US GAAP for nongovernmental entities.
| The goal of the Codification is to simplify the organisation of thousands of authoritative US accounting pronouncements issued by multiple standard-setters, including FASB, the American Institute of Certified Public Accountants (AICPA), and the Emerging Issues Task Force (EITF). Once approved by the FASB, the Codification will become the single source of authoritative US GAAP and will supersede existing FASB, AICPA, EITF, and related literature. At that time, only one level of authoritative GAAP will exist. All other literature will be nonauthoritative. The Codification reorganises the thousands of US GAAP pronouncements into roughly 90 accounting topics, and displays all topics using a consistent structure. Also to be included is relevant Securities and Exchange Commission (SEC) guidance that will follow the same topical structure in separate sections in the Codification. |
