FASB Codification Live

By Mark Dauberman, CPA

Over the last several years, FASB has had a team working on organizing all authoritative standards into a single document, referred to as the FASB Codification, which went live July 1.

The codification does not change or set GAAP, but organizes it in a manner that is intended to simplify the process for determining the proper accounting treatment for transactions, events and circumstances. It is organized by putting all of the authoritative literature related to a topic in the same section, sorted by topic instead of by pronouncement. It includes literature issued by authoritative standard setters from all categories of the GAAP hierarchy.

As of July 1, anything that is not included in this codification will not be considered GAAP and new standards will not be authoritative when released. They will instead initiate a FASB process for creating Codification Update Instructions. During any transition period, the codification will include both the existing standards and the updated standards. The existing standards will be removed when the new standards become completely effective.

This entry was posted on Friday, August 7th, 2009 at 10:09 am and is filed under CalCPA News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.