u.s. gaap codification demystified
DESCRIPTION
FASB's U.S. GAAP codificationTRANSCRIPT
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U.S. GAAP Codificationdemystified….
Sunil [email protected]
www.UGAAP.comResources – Insights – Information on U.S. GAAP
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U.S. GAAP CodificationWhat:• The Financial Accounting Standards Board's (FASB) Codification is a
reorganization of current U.S. GAAP into a topical format that eliminates the current GAAP hierarchy and establishes instead two levels of guidance:
– authoritative and – nonauthoritative
• The Codification is not intended to change U.S. GAAP and is– Fully electronic– Organized by accounting topic– Expected to streamline accounting research
• Codification includes only selected SEC guidance.• It was issued on July 1, 2009.
Effective date for calendar year companies: Q3-2009 financials
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U.S. GAAP CodificationWhy issued?- Simplify user access by codifying all authoritative U.S.
GAAP in one spot related to a particular “Topic” in one place.
Does Codification change GAAP? - No
What has changed due to Codification?- Codification will affect the way we reference U.S.
GAAP in financial statements and in our accounting policies.
- Also changes how we research for any accounting issues.
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How does U.S. GAAP referencing change?
Old referencing
General FASB codification (New)
FAS 5 ASC 450 Contingencies
FAS 52 ASC 830 Foreign Currency Matters
FAS 109/ FIN 48 ASC 740 Income Taxes
FAS 141(R) ASC 805 Business Combinations
Notes: Accounting Standard Codification (ASC) Use “Cross-Reference Tool” within codification to
determine the new ASC numbering.
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Comparison for old vs new:
Under old GAAP hierarchy: Accounting for a nonmonetary transaction is covered in
– APB Opinion No. 29, Accounting for Nonmonetary Transactions; – EITF Issue No. 01-2, “Interpretations of APB Opinion No. 29”; – EITF Issue No. 04-13, “Accounting for Purchases and Sales of
Inventory With the Same Counterparty”; or – EITF Issue No. 93-11, “Accounting for Barter Transactions
Involving Barter Credits.”
Under new Codification: Topic 845 (ASC 845, Nonmonetary Transactions) will contain all of the authoritative guidance on accounting for a nonmonetary transaction.
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Structure of Codification
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Codification: Next steps
• We all need to get familiarized with Codification to become familiar with the new structure for U.S. GAAP.
• Any updates would be provided by issuing Accounting standard Updates (ASUs), the guidance would be added within original ASC.
• FASB codification is available on www.fasb.org website. The basic version to access U.S. GAAP is free.
• Use FASB Accounting Standards Codification Quick Reference Guide
• Follow steps outlined on the following pages to access Codification.
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Access U.S. GAAP Codification at http://www.fasb.org
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Codification: Register as new user
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Codification: Register as new user
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Codification: Register as new user
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Codification: “Login” after registration
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Codification: Online tutorials
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Codification: View online tutorials
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Codification: Online tutorials
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U.S. GAAP Codification
demystified….Questions
www.UGAAP.comResources – Insights – Information on U.S. GAAP