Accounting Standards Codification
By: Gardiner Thomsen CPAs | email
The Financial Accounting Standards Board (FASB) has recently initiated an effort to simplify the organization of authoritative U.S. accounting pronouncements and standards. The FASB has released the “NEW” FASB Accounting Standards Codification™ and related online Codification Research System. FASB will confirm the accuracy of the Codification by asking users to provide feedback during a one-year verification period. Register at: http://asc.fasb.org.
The Codification reorganizes the 1000’s of U.S. generally accepted accounting principles (GAAP) pronouncements into 90 accounting topics, and displays them all using a consistent structure. Pronouncements from multiple standard setters and related literature are covered. It is intended to reflect GAAP for non-governmental entities.
FASB expects the Codification to reduce time and effort required to solve accounting research issues. Also it will improve usability of the literature, thereby mitigating the risk of noncompliance with standards and provideing real-time updates of new standards.
As we all know, GAAP is often confusing with an enormous amount of information. The Codification will make GAAP more understandable and easier to research. We encourage you to take the time to learn the new standards and make yourself familiar with the Codification. However, always feel free to contact us anytime.