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 All existing accounting standards documents are superseded as described in FASB Statement No. 168, The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles.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:
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)Derivative Implementation Group (DIG) Issues
Accounting Principles Board (APB) Opinions
Accounting Research Bulletins (ARB)
Accounting Interpretations (AIN)
American Institute of Certified Public Accountants (AICPA)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.