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Codification of U.S. GAAP, ASC 105

A Brief History

Effective July 1, 2009

1. Accounting Standards Codification (ASC) integrated
–> accounting standards from all other sources
–> into the single “authoritative” source of U.S. GAAP

2. Website

 A Brief History of U.S. GAAP

1. In 1939, American Institute of Accountants (AIA) formed
–> the Committee on Accounting Procedure (CAP)

2. The Committee on Accounting Procedure (CAP) issued
–> 51 Accounting Research Bulletins (ARB)

3. In 1957, American Institute of Accountants (AIA) was renamed as
–> American Institute of Certified Public Accountants (AICPA)

4. In 1959, American Institute of CPAs (AICPA) formed
–> the Accounting Principles Board (APB)

5. Accounting Principles Board (APB) issued
–> 31 APB Opinions

6. In 1973, Financial Accounting Standards Board (FASB) was formed

7. Financial Accounting Standards Board (FASB) issued
–> 168 Statements of Financial Accounting Standards (SFAS)

8. Effective July 1, 2009
–> Accounting Standards Codification (ASC) is
–> the single source of “authoritative” U.S. GAAP

9. Accounting Standards Codification (ASC) integrated
–> all previous sources of U.S. GAAP
–> including
–> Accounting Research Bulletins (ARB)
–> Accounting Principles Board (APB) Opinions
–> Statements of Financial Accounting Standards (SFAS)
–> AICPA Statements of Position (SOP)
–> FASB Emerging Issue Task Force (EITF) Issues
–> SEC Staff Accounting Bulletins (SAB) and other SEC rules

Sources integrated into the Accounting Standards Codification (ASC)

1. Accounting Research Bulletins (ARB)

ARB 43, June 1953
–> “Restatement and Revision of Accounting Research Bulletins”
–> Integrated all previously issued Accounting Research Bulletins (ARB 1 – ARB 42) into ARB 43

ARB 51, August 1959
–> “Consolidated Financial Statements”

2. Accounting Principles Board (APB) Opinions

APB Opinion 1, November 1962
–> “New Depreciation Guidelines and Rules”
–> APB Opinion 1 was superseded by SFAS 96 in December 1987

APB Opinion 31, June 1973
–> “Disclosure of Lease Commitments by Lessees”
–> APB Opinion 31 was superseded by SFAS 13 in November 1976

3. Statements of Financial Accounting Standards (SFAS)

SFAS 1, December 1973
–> “Disclosure of Foreign Currency Translation Information”
–> SFAS 1 was superseded by SFAS 8 in October 1975
–> SFAS 8 was superseded by SFAS 52 in December 1981

SFAS 168, June 2009
–> “The FASB Accounting Standards Codification(TM) and the Hierarchy of Generally Accepted Accounting Principles, Replacement of FASB Statement No. 162”


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Generally Accepted Accounting Principles, ASC 105

GAAP Hierarchy
   Statement of Financial Accounting Standards No. 168, June 2009
“The FASB Accounting Standards Codification and the Hierarchy of GAAP”

Two levels of U.S. GAAP
Level 1: Authoritative GAAP: Codification (http://asc.fasb.org)
Level 2: Nonauthoritative GAAP: Others

Sources of U.S. GAAP

Nonpublic Entities
–> “Codification” is the single source of authoritative U.S. GAAP

SEC Registrants
Both (a) and (b) are the sources of authoritative U.S. GAAP
(a) Codification (http://asc.fasb.org)
(b) SEC Rules


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