New FASB Accounting Standards Codification Changes GAAP Research
and References (E.g., FAS 109 and FIN 48)
By Laura C. Kinney, Esq.
Buchanan Ingersoll & Rooney PC, Washington, DC
The accounting profession experienced a major change on July 1,
2009, when the Financial Accounting Standards Board (the
“FASB”) launched the FASB Accounting Standards
Codification (the “FASB ASC”). The FASB ASC replaced all
previously existing financial accounting standards (other than U.S.
Securities and Exchange Commission pronouncements) to become the
single source of authoritative nongovernmental U.S. generally accepted
accounting principles (GAAP). From now on, instead of issuing new
standards (e.g., FAS 109), the FASB will issue updates to the
FASB ASC.
The thousands of U.S. GAAP pronouncements that comprise GAAP are
now reorganized into approximately 90 topics under the FASB ASC; this
significantly changes the presentation of GAAP. This change will
affect how financial statement preparers both research and reference
GAAP. Preparers will no long refer to FASB Statements, FASB Financial
Interpretations, Emerging Issues Task Force Issues, AICPA Accounting
Statements of Position, Accounting Principles Bulletins, and all other
pronouncements. Instead, references to GAAP will more closely resemble
the Internal Revenue Code. Those in the tax field will no longer
reference FAS 109 or FIN 48 but instead reference the topics:
•
FASB ASC 740 (expenses),
•
FASB ASC 805 (business combinations),
•
FASB ASC 830 (foreign currency matters), and
•
FASB ASC 980 (regulated operations).
Financial statement preparers must apply the FASB ASC to interim
and annual periods ending after September 15, 2009, which means
prepares must begin using it for periods beginning on or about July 1,
2009. For private calendar year companies that do not file interim
statements, the first set of financial statements to use the FASB ASC
would be their December 31, 2009 financial statements.
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