FASB Accounting Standards Codification™

The Financial Accounting Standards Board (FASB) has released the FASB Accounting Standards Codification™.  The AICPA supports the Codification because it organizes and simplifies the U.S. Generally Accepted Accounting Principles (GAAP).

What is the FASB Accounting Standards Codification?
The new FASB Accounting Standards Codification has organized thousands of accounting pronouncements – including those of FASB itself, the AICPA, and the Emerging Issues Task Force – under approximately 90 topics.

The Codification does not change U.S. GAAP. The goal of the Codification is to provide a more user-friendly, topically organized set of standards that decreases the research time necessary to address accounting issues.

What are the benefits of the Codification?

• Reduces the amount of time and effort required to solve an accounting research issue.
• Improves usability of the literature thereby mitigating the risk of noncompliance with standards.
• Provides real-time updates as new standards are released.
• Assists the FASB with the research and convergence efforts required during the standard-setting process.
• Becomes the authoritative source of literature for the completed XBRL taxonomy.

Who is affected?
The Codification will affect all members of the accounting profession, including preparers, auditors, tax practitioners, financial statement users, academics and students.

What are we asking AICPA members to do?
The AICPA is encouraging members to use the Codification during the course of their daily work during the verification period and provide feedback to FASB.  They may register to use the Codification Research System at http://asc.fasb.org.  In addition to offering users an opportunity to submit feedback before adoption, the verification will give them a chance to learn how to use the Codification effectively.

Why do you need to know about the Codification?
It is important that training leaders understand the nature of the Codification because you hold a vital role in ensuring that your professional staff is prepared for this significant advancement.