FASB Accounting Standards CodificationTM Launches Today

The Financial Accounting Standards Board (FASB) today launched the FASB Accounting Standards Codification as the single source of authoritative nongovernmental U.S. generally accepted accounting principles (GAAP). The Codification is effective for interim and annual periods ending after September 15, 2009.

All existing accounting standards documents are superseded as described in FASB Statement No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles. All other accounting literature not included in the Codification is nonauthoritative.

“Today’s launch of the Codification represents a milestone in U.S. accounting standards,” states FASB Chairman Robert Herz. “After years of development, this much more efficient, user-friendly method of researching up-to-date solutions has become a reality. I want to thank the many people at the FAF, the FASB, and the hundreds of constituents that contributed to the successful completion of this very major endeavor.”

Starting in January 2008, the FASB made the Codification available for free for an extended verification period, during which time users were urged to provide feedback on the new system to confirm that the Codification accurately reflects existing U.S. GAAP for nongovernmental entities. In December 2008, the FASB publicly announced July 1, 2009, as the date on which the Codification was expected to go live.

The Codification reorganizes the thousands of U.S. GAAP pronouncements into roughly 90 accounting topics and displays all topics using a consistent structure. It also includes relevant Securities and Exchange Commission (SEC) guidance that follows the same topical structure in separate sections in the Codification.

To prepare constituents for the change, the FASB has provided a number of tools and training resources including:

An online tutorial available on the Codification website at http://asc.fasb.org

A Notice to Constituents that includes a significant amount of background information at http://asc.fasb.org

A Codification Question and Answer (Q&A) document at http://www.fasb.org/cod_project/Cod_overview_12-08.pdf

Various webcasts, including a June 22 webcast entitled Transitioning to FASB Codification on July 1, 2009, and a March 13, 2008 webcast entitled The Move to Codification of U.S. GAAP, both available at http://www.fasb.org/fasb_webcast_series/index.shtml

“Countdown to Codification Alerts,” a series of weekly e-mails featuring tips to help ease the transition to the new research system, available at http://www.fasb.org/cs/ContentServer?c=Page&pagename=FASB%2FPage%2FSectionPage&cid=1176155830152

“Countdown to Codification Alerts,” a series of weekly e-mails featuring tips to help ease the transition to the new research system, available at http://www.fasb.org/cs/ContentServer?c=Page&pagename=FASB%2FPage%2FSectionPage&cid=1176155830152

Numerous presentations.

More details about the availability of the Codification, including subscription information and a planned print edition, are available at http://www.fasb.org/cs/ContentServer?c=Page&pagename=FASB%2FPage%2FSectionPage&cid=1176156264264.