New Accounting Standards
for Public and Non-Public Entities
Mark C Rittmayer CPA
• 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.
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-
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
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
What does the ASC do?
ASC is intended to:
• Replace the existing hierarchy of current sources for
• 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
• Simplify the process as the FASB works to converge US
GAAP with IFRS.
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
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 online version of the ASC is available at: