Project Update

FAS 162 Amendments and Codification

Last Updated: August 3, 2009 (Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective
Due Process Documents
Decisions Reached at the Last Meeting
Summary of Decisions Reached to Date
Next Steps
*Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The objective of this project is to amend FASB Statement No. 162, The Hierarchy of Generally Accepted Accounting Principles, to establish the FASB Accounting Standards CodificationTM (Codification) to become the single source of authoritative U.S. accounting and reporting standards, other than guidance issued by the SEC.

For more information on the Codification, reference the Notice to Constituents.

Due Process Documents

The Board completed this project on June 29, 2009, with the issuance of FASB Statement No. 168, The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162. This Statement must be applied for financial statements issued for interim and annual periods ending after September 15, 2009.

Final Statement

Comment Letter Summary

Decisions Reached at the Last Meeting (June 3, 2009)

See minutes below.

Summary of Decisions Reached to Date (March 29, 2009)

See Statement 168.

Next Steps

With the issuance of Statement 168, the Board completed its project to establish the Codification as the source of authoritative accounting principles recognized by the FASB. This standard will be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP.

*Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final Statement, Interpretation, FSP, or Statement 133 Implementation Issue.

*June 3, 2009 Board Meeting—To discuss feedback received during the comment letter period for the Exposure Draft. The Board directed the staff to proceed to a draft of the final Statement for a vote by written ballot.
February 25, 2009 Board Meeting—Decisions about several issues related to the Codification. The Board directed the staff to proceed to draft of an Exposure Draft.
December 17, 2008 Board Meeting—Agenda Announcement

Background Information

Statement 162, which became effective on November 13, 2008, identifies the sources of accounting principles and the framework for selecting the principles used in preparing the financial statements of nongovernmental entities that are presented in conformity with U.S. GAAP. Furthermore, it arranges these sources of GAAP in a hierarchy for users to apply accordingly.

The Codification is set to officially launch on July 1, 2009. The Codification will become the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other nongrandfathered non-SEC accounting literature not included in the Codification will become nonauthoritative. This Statement is effective for financial statements issued for interim and annual periods ending after September 15, 2009.

Contact Information

Chad Bonn
FASB Practice Fellow
cibonn@fasb.org