Project Updates
Simplification and Codification
Last Updated: February 2, 2005 (Updated sections are indicated with an asterisk *)
Background Information
In the 2001 Annual FASAC Survey (Survey), constituents were asked to prioritize the activities of the FASB. Included among those activities was a project to address the broad issue of “standards overload,” encompassing many separate but related issues, including the following:
- An increase in the level of detail and complexity in accounting standards
- An increase in the amount of interpretive and implementation guidance for applying accounting standards issued by other standard-setting bodies, including the FASB’s Emerging Issues Task Force (EITF) and the AICPA’s Accounting Standards Executive Committee (AcSEC)
- Difficulty in retrieving all accounting literature on specific topics
- Disclosure overload.
Many respondents to the Survey indicated that a project addressing the broad issue of standards overload should be a high priority of the Board. In response, in November 2001, the Board discussed ways to address that issue with a group of its constituents.
At its January 9, 2002 meeting, the Board decided to address the broad issue of standards overload through a series of initiatives aimed at simplifying and codifying the accounting literature. The Board has completed a number of initiatives in this area since January 2002 including a principles-based approach to US standard setting.
The website contains a description of the current initiatives as indicated in the following links: