Fall 2009 issue of Horizons

INDUSTRY u not-for-profit

NFP GAAP Codification

By Judy Murphy, CPA

On July 1, 2009, the FASB Accounting Standards Codification became effective. The codification represents a major restructuring of accounting and reporting standards and becomes a single source of authoritative GAAP. All authoritative literature, including FASB standards, interpretations, EITIs and FSPs or AICPA opinions, interpretations, statements of position, is now documented in one source. Non-authoritative sources are excluded from the codification. • Reducing the amount of time spent researching accounting issues by simplifying user access to all authoritative U.S. GAAP. • Improving the usability of the literature to mitigate the risk of noncompliance. • Providing real-time updates as new standards are released. • Becoming the authoritative source of literature and clarifying that guidance not contained in FASB ASC is not considered authoritative. Objectives of the codification include:

The FASB ASC utilizes a topical structure; guidance

45 u fall 2009 issue