Be Ready When GAAP Is Codified on July 1

July 1 will be a landmark day for the accounting profession as the Financial Accounting Standards Board (FASB) Accounting Standards CodificationTM (ASC) will become the authoritative source of nongovernmental accounting literature (in addition to SEC pronouncements). The FASB ASC does not make changes in GAAP so much as in its presentation, and it will have a profound impact on how standards are researched and referenced.

“It should make research easier for financial statement preparers, auditors and academicians, but first they need to become familiar with the FASB ASC and how it is organized,” said Carl Williams, past president of the Hawaii Society of CPAs. “A wide range of resources are available to help CPAs understand and make use of the FASB ASC so they can be ready on July 1 and I strongly encourage everyone to do so!”

Here are some ways to get acquainted with the FASB ASC:

• Explore FASB ASC. CPAs should begin at the FASB Accounting Standards Codification Web page, where you register to use this resource and to gain access to tutorials and other valuable information. Once the codification becomes authoritative, it will become a fee-based service (a no-frills version will remain free). Additional information, such as press releases and frequently asked questions, is available from the FASB’s home page. CPAs also can read the online Countdown to Codification Alerts, a series of weekly updates that highlight key aspects of the transition. The first alert was published on May 1.

• AICPA dedicated Web site for background, information and resources. An AICPA Web page devoted to the codification also contains a wealth of resources, including free archived Webcasts from both the AICPA and the FASB and access to articles and publications. From there, link to the AICPA’s FASB ASC Overview and Recent Developments Web page, which also is available for download in PDF format. It explains the scope and structure of the FASB ASC and the FASB ASC Research System, as well as recent events regarding verification and transition provisions for the FASB ASC’s effective date. The PDF document will enable you to read offline, easily share the information and use it as a handout for staff, clients and colleagues.

• Glean insight through a video and articles. An informational one-minute video featuring Arleen Thomas, AICPA Senior Vice President - Member Competency and Development, highlights how the codification will be different from GAAP as members have always known it. In addition, a Journal of Accountancy article offers some background on the project and briefly explains how the new computer-based system differs from the prior, paper-based GAAP hierarchy. Additional articles and resources are available on the magazine’s GAAP Codification resources page.

• Share your knowledge with coworkers using an AICPA-developed PowerPoint presentation. This PowerPoint presentation with notes is designed to help CPAs educate others in their organizations on the FASB ASC. It will help them understand the purpose, meaning and structure of the FASB ASC; how to use it; available resources; and what they need to do to be prepared when the FASB ASC becomes authoritative on July 1.

• Financial Reporting Alert for CPAs working in business and industry. Designed for CPAs working in business and industry, the AICPA’s FASB Codification Developments 2008: Strengthening Financial Management and Reporting publication discusses the structure of the FASB ASC and contains practical case studies on how to navigate it and use it for research. The publication will be discontinued July 1. Order now at www.cpa2biz.

CPAs in all work environments need to get up to speed now – time is running out. Reduce anxiety and be sure to know the FASB ASC before you are required to use it.