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New Accounting Standards Mcr Cpa 2009

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interpretation by CPA of new US rules

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New Accounting Standards Mcr Cpa 2009

  1. 1. New Accounting Standards for Public and Non-Public Entities Mark C Rittmayer CPA
  2. 2. • On July 1, 2009, the Financial Accounting Standards Board (FASB) will issue the Accounting Standards CodificationTM (ASC). • The ASC will affect financial statements for all public and non-public entities in the US.
  3. 3. What is ASC ? • The ASC is intended to reorganize, summarize and simplify all US Generally Accepted Accounting Principles (GAAP). • While the ASC does not technically change GAAP, it does replace all current standards on which GAAP is based. After 7/1/09 any previous sources for GAAP will be non- authoritative.
  4. 4. Is ASC the same as IFRS? • NO. ASC is not the same as IFRS (International Financial Reporting Standards) • While there is an ongoing effort to conform GAAP standards to IFRS, the ASC is not changing current GAAP. • The AICPA has more information on IFRS at IFRS.COM
  5. 5. Does ASC change SEC requirements? • NO. ASC does not supersede or change any current SEC reporting requirements for public companies. It does however, supersede any other sources of US GAAP, and for public companies will be the authoritative basis for US accounting principles in addition to SEC guidance. • Relevant SEC guidance will be included in the ASC text, but it will not contain all SEC rules and regulations.
  6. 6. What does the ASC do? ASC is intended to: • Replace the existing hierarchy of current sources for GAAP standards. • Integrate GAAP into a single authoritative source. • Reduce the risk of non-compliance by improving the clarity and understanding of US accounting principles. • Provide accurate and timely updates as standards are changed. • Simplify the process as the FASB works to converge US GAAP with IFRS.
  7. 7. I don't work for a public company Does the ASC affect me? • Absolutely. The ASC will be the only basis for determining proper accounting principles for all US companies whether public or private. • The ASC does not however address governmental entities
  8. 8. What to do ? • I suggest that if you have any responsibility for accounting or financial statements for a US based company, you should be aware of the ASC which is effective July 1. • Additional resources are available from the AICPA • The online version of the ASC is available at: • asc.fasb.org/home

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