GAAP Codification

Oct 24th, 08

The Financial Accounting Standards Board (FASB) has been undergoing the process of codifying generally accepted accounting standards (GAAP).  While the codification is a major restructuring of accounting and reporting standards, the intention is to retain existing GAAP.  The FASB is expected to approve the codification early in 2009 as the single source of GAAP (other than SEC guidelines).  At that time, the codification will supersede all other accounting and reporting standards.  Until that time, a draft of the codification is available online to allow users to verify the accuracy of the content. (Free registration required; found at http://asc.fasb.org/register)

The codification arranges accounting and reporting standards into Topics, Subtopics, Sections, and Subsections.   The topics, subtopics, sections, etc. are numbered in a somewhat complex numbering system that is explained in the FASB’s “Notice to Constituents.”