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FASB
Accounting Standards
Codification

                                      Michael Piessens, CPA, CMA, CFM
            ...
Seminar Logistics
       All attendees are muted during the presentation
         – We cannot hear you

       Audio diffi...
Our Presenters

                            Michael Piessens, CPA, CMA, CFM
                            Manager of Financi...
Agenda

       Overview
       Website Layout & Functionality
       Available Tools
       Next Steps / Implications
    ...
Overview — What It Is
       An online repository and search system
       that integrates and categorizes existing
      ...
Overview — What’s Included
       FASB Statements, Interpretations,
       Technical Bulletins, Staff Positions, Staff
   ...
Overview — What’s Included

       Accounting Interpretations
       AICPA SoP’s, Audit & Accounting
       Guides, Practi...
Overview — What’s Included

       Interpretive Releases
       SEC Staff Guidance in SAB’s, EITF
       Topic D, SEC Staf...
Overview — Replaces FAS 162

       Hierarchy of GAAP – replacement of
       FAS 162
       Establishes 2 GAAP levels:
  ...
Overview — Replaces FAS 162

        Codification will become the single
        source of authoritative guidance for U.S....
Overview — Benefits

        One stop shopping for all authoritative
        guidance
        Existing guidance can be upd...
Overview — Structure

        Organized into 5 areas covering
        ~90 topics
         Area                            ...
Overview — Structure
        Topics include one or more Sub-topics
          –     (e.g., Under the “Leasing” Topic are th...
Overview — Structure
         Structure of Referencing
           ASC XXX-YY-ZZ-PP
           XXX = Topic
           YY = ...
Overview — Structure
        Structure of Referencing

          Sample References for Leases :

          –     ASC 840 =...
Overview — Referencing

        Referencing within Financial Statements
          –     Once an entity adopts Codification...
Overview — Disclosure Language
        Accounting for Long-Term Contracts — Example
        of Before vs. After
          ...
Overview — Disclosure Language

     Overview – Disclosure Language Before vs.
        After (Example)




18    Copyright...
Website Layout & Functionality




     Home Page
19     Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights R...
Website Layout & Functionality

                                                                            TOPIC   SUB-TO...
Website Layout & Functionality
        “Join All Sections” Feature
          –     Use to join all Sections within a Sub-t...
Website Layout & Functionality
        “Join Sections” Feature
          –     Brings together Sections from multiple Sub-...
Website Layout & Functionality
        “Printer Friendly with Sources” Feature
          –     Enables user to print curre...
Website Layout & Functionality
        “Future Codification Updates”
          –     Published as Codification Update Inst...
Available Tools

        FASB website (http://fasb.org)
          –     Basic view (no charge, limited functionality,
    ...
Next Steps / Implications
        Implementation will be challenging
          –     New structure will take time to learn...
Next Steps / Implications
        Update policies, memo’s, bases for
        conclusions, etc.
        Determine which too...
Resources

        FASB
          –     Notice to Constituents
                (http://asc.fasb.org/home)
          –     ...
Resources

        AICPA
          –     FASB Codification Developments – 2008:
                Strengthening Financial Ma...
Questions




      Michael Piessens                                                            Robert Busch
      mpiesse...
MFA – Moody, Famiglietti & Andronico




        IRC Circular 230 Disclosure: To ensure compliance with requirements impos...
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Mfa Web Seminar Fasb Accounting Standards Codification Jun 24 2009

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In June 2009, MFA held a web seminar entitled, "Preparing for FASB Accounting Standards Codification", to help interested parties jump-start the process to the new codification. MFA presenters Michael Piessens and Robert Busch, discussed the purpose, meaning and structure of the codification, highlighted some of its key benefits and explained how to use the codification. The presentation from this event is available via the attached link.

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Mfa Web Seminar Fasb Accounting Standards Codification Jun 24 2009

  1. 1. FASB Accounting Standards Codification Michael Piessens, CPA, CMA, CFM Rob Busch, CPA MFA – Moody, Famiglietti & Andronico, LLP Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  2. 2. Seminar Logistics All attendees are muted during the presentation – We cannot hear you Audio difficulties – Hang up and redial 312-878-0211 – Enter access code 302-245-870 – Enter the Audio Pin displayed on your Attendee Control Panel We will take questions at end of presentation – During the presentation you may type questions into the Question Screen on your Attendee Control Panel – click Send Privately CPE credit 2 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  3. 3. Our Presenters Michael Piessens, CPA, CMA, CFM Manager of Financial Reporting MFA - Moody, Famiglietti & Andronico Robert Busch, CPA Senior Audit Manager MFA - Moody, Famiglietti & Andronico 3 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  4. 4. Agenda Overview Website Layout & Functionality Available Tools Next Steps / Implications Resources Q&A 4 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  5. 5. Overview — What It Is An online repository and search system that integrates and categorizes existing U.S. GAAP for non-governmental entities Includes all guidance by standard setters, (FASB, AICPA, EITF, etc.) within levels A through D of U.S. GAAP hierarchy Also includes relevant content from SEC / SEC staff 5 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  6. 6. Overview — What’s Included FASB Statements, Interpretations, Technical Bulletins, Staff Positions, Staff Implementation Guides, FAS 138 Examples EITF Abstracts and Topic D DIG Issues APB Opinions ARB’s 6 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  7. 7. Overview — What’s Included Accounting Interpretations AICPA SoP’s, Audit & Accounting Guides, Practice Bulletins, Technical Inquiry Service (Software Revenue Recognition) Reg. S-X Financial Reporting / Accounting Series Releases 7 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  8. 8. Overview — What’s Included Interpretive Releases SEC Staff Guidance in SAB’s, EITF Topic D, SEC Staff Observer Comments (at EITF meetings) 8 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  9. 9. Overview — Replaces FAS 162 Hierarchy of GAAP – replacement of FAS 162 Establishes 2 GAAP levels: authoritative and non-authoritative 9 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  10. 10. Overview — Replaces FAS 162 Codification will become the single source of authoritative guidance for U.S. accounting and reporting standards other than guidance by SEC Effective July 1, 2009 for interim and annual periods ending after September 15, 2009 (i.e., for periods that begin on or after July 1, 2009) 10 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  11. 11. Overview — Benefits One stop shopping for all authoritative guidance Existing guidance can be updated and new guidance incorporated by topical area instead of by standard type Codification users will be able to find a topic and ensure they are accessing all information relevant to that topic 11 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  12. 12. Overview — Structure Organized into 5 areas covering ~90 topics Area Topic General Principles & Objectives GAAP Presentation B/S, I/S, etc. F/S Accounts (Assets, Liab., Receivables, Rev. Rec., Equity, Rev., Exp.) Inventory, Debt, etc. Broad Transactions Consol., Leases, etc. Industries Airlines, Software, Entertainment, etc. 12 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  13. 13. Overview — Structure Topics include one or more Sub-topics – (e.g., Under the “Leasing” Topic are the “Overall”, “Operating Leases” and “Capital Leases” Sub- topics Sub-topics include one or more Sections – (e.g., “Scope”, “Recognition”, “Measurement”, “Disclosure”, etc.) Sections can include one or more Sub- sections – (e.g., “Lessor vs. Lessee Accounting”) 13 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  14. 14. Overview — Structure Structure of Referencing ASC XXX-YY-ZZ-PP XXX = Topic YY = Subtopic, ZZ = Section (Note: “S” preceding the Section no. re: SEC content) PP = Paragraph Note: Referencing structure doesn’t include “Sub-sections”. It references “Paragraphs” within “Sections”. 14 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  15. 15. Overview — Structure Structure of Referencing Sample References for Leases : – ASC 840 = Leases (Topic) – ASC 840 - 10 = Overall (Sub-topic) – ASC 840 - 10 - 15 = Scope (Section) – ASC 840 - 10 - 50 = Disclosure (Section) 15 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  16. 16. Overview — Referencing Referencing within Financial Statements – Once an entity adopts Codification, any references within its financial statements to specific guidance should be to that for the Codification, not the original pronouncements – Financial statements for periods beginning on or after July 1, 2009 should reflect the new referencing 16 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  17. 17. Overview — Disclosure Language Accounting for Long-Term Contracts — Example of Before vs. After – Under Current Literature (pre-July 1, 2009) - Reference: AICPA SOP 81-1 …the Company currently accounts for revenue recognition of its long-term contracts under the percentage-of-completion method in accordance with provisions of AICPA Statement of Position No. 81-1, Accounting for Performance of Construction-Type and Certain Production-Type Contracts… – Under FASB Codification (as of July 1, 2009) - Reference: FASB ASC 605-35-25 … the Company currently accounts for revenue recognition of its long-term contracts under the percentage-of-completion method in accordance with provisions of FASB ASC 605-35-25 (Prior authoritative literature: SOP 81-1, Accounting for Performance of Construction-Type and Certain Production-Type Contracts) … 17 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  18. 18. Overview — Disclosure Language Overview – Disclosure Language Before vs. After (Example) 18 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  19. 19. Website Layout & Functionality Home Page 19 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  20. 20. Website Layout & Functionality TOPIC SUB-TOPIC AREA Navigation - Area, Topic, Sub-topic, etc. 20 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  21. 21. Website Layout & Functionality “Join All Sections” Feature – Use to join all Sections within a Sub-topic. [i.e., Sections 00, 05, 15…S99 within Sub-topic 10 (Overall) of Topic 320 (Investments—Debt and Equity Securities)] – Useful tool for transition “Combine Sections” Feature – Similar to “Join” feature 21 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  22. 22. Website Layout & Functionality “Join Sections” Feature – Brings together Sections from multiple Sub-topics into one document – Example — the “Disclosure” Sections for all Sub- topics within the “Revenue Recognition” Topic “Cross Reference” Feature – Enter either a historical GAAP reference or a Codification reference – Receive a report showing the historical GAAP references and a link to the current Codification guidance 22 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  23. 23. Website Layout & Functionality “Printer Friendly with Sources” Feature – Enables user to print current Codification content with notations of the sources from the historical GAAP literature – Can provide a very easy and user-friendly reference tool for transition “Master Glossary” – Provides listing of all defined terms in the Codification – May include multiple definitions for the same term (i.e., public entity) 23 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  24. 24. Website Layout & Functionality “Future Codification Updates” – Published as Codification Update Instructions (“CUI’s”) – Will contain a new standard, along with instructions regarding how the new standard will be incorporated into the Codification 24 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  25. 25. Available Tools FASB website (http://fasb.org) – Basic view (no charge, limited functionality, content only) – Enhanced view (requires subscription, full functionality) 25 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  26. 26. Next Steps / Implications Implementation will be challenging – New structure will take time to learn – Old standards may be split over several new topics Review your financial statements to determine what will need to change and how Visit FASB Codification website and become familiar with its structure and functionality 26 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  27. 27. Next Steps / Implications Update policies, memo’s, bases for conclusions, etc. Determine which tool you will use to access the Codification Discuss questions and concerns with MFA 27 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  28. 28. Resources FASB – Notice to Constituents (http://asc.fasb.org/home) – Online Tutorial (http://asc.fasb.org/home) – Codification Q&A (http://fasb.org/cod_project/Cod_overview_1 2-08.pdf) 28 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  29. 29. Resources AICPA – FASB Codification Developments – 2008: Strengthening Financial Management and Reporting (http://www.cpa2biz.com/AST/Main/CPA2BI Z_Primary/Accounting/FinancialReporting/P RDOVR~PC-029209/PC-029209.jsp) 29 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  30. 30. Questions Michael Piessens Robert Busch mpiessens@mfa-cpa.com rbusch@mfa-cpa.com 978-569-2919 978-557-5327 30 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.
  31. 31. MFA – Moody, Famiglietti & Andronico IRC Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. 31 Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.

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