WASHINGTON (8/27/08)—The Financial Accounting Standards Board (FASB) has announced the completion of an important step in its ambitious project to codify the thousands of U.S. GAAP pronouncements into roughly 90 accounting topics. Earlier this month FASB released the Business Combinations Topic to the FASB Accounting Standards Codification (Codification). FASB constituents are encouraged to use the online Codification Research System during its verification period free of charge to research accounting issues. They are asked to provide comment on whether the codification content accurately reflects existing U.S. GAAP for nongovernmental entities. Scott Waite, chairman of the Credit Union National Association’s Accounting Task Force and an advisor to FASB, said of the recent announcement, "This is a great addition to the Codification Project which is close to completion. Credit unions will be using the new standard in 2009 for business combinations. I'm sure that they'll find the new tool very beneficial and less complex to use as an important source for GAAP related matters." Waite, who is also SVP-CFO of Patelco CU, San Francisco , added, "Today, the proper application of GAAP can require the reference to many different standards and pronouncements located throughout GAAP's many thousands of pages of literature. The Codification tool will provide a location for all related guidance which will be sorted by topic. "I highly encourage them to access and review the on-line tool which is free of charge to use. We are also seeking comments on its usefulness before it goes live." The Codification's one-year verification phase ends Jan. 15, 2009. Users are advised that the Codification content is not yet approved as authoritative and, therefore, they must verify research results using their existing resources for the currently effective literature. FASB intends the new structure and new system to have benefits for users, such as:
* Reduce the amount of time and effort required to solve an accounting research issue; * Improve usability of the literature thereby mitigating the risk of noncompliance with standards; * Provide real-time updates as new standards are released; and * Assist FASB with the research and convergence efforts required during the standard-setting process.
Use the resource link below to become a registered user to access and review the FASB Codification.