Summary of Statement No. 111
Rescission of FASB Statement No. 32 and Technical Corrections (Issued 11/92)
Summary
This Statement rescinds FASB Statement No. 32, Specialized
Accounting and Reporting Principles and Practices in AICPA
Statements of Position and Guides on Accounting and Auditing
Matters, and its related pronouncements. The guidance in
Statement 32, which specifies that the specialized accounting
principles and practices contained in AICPA Statements of Position
and Guides are preferable for purposes of justifying a change in
accounting principles as required by APB Opinion No. 20,
Accounting Changes, is no longer needed with the issuance of
the AICPA's Statement on Auditing Standards (SAS) No. 69, The
Meaning of "Present Fairly in Conformity With Generally Accepted
Accounting Principles" in the Independent Auditor's Report. In
general, SAS 69 requires an entity to adopt the accounting
principles in pronouncements whose effective date is after March
15, 1992. An entity initially applying an accounting principle
after that date (including those making an accounting change) must
follow the applicable hierarchy set forth in SAS 69. An entity
following an established accounting principle that was effective as
of March 15, 1992 need not change its accounting until a new
pronouncement is issued. This Statement also amends other existing
authoritative literature to make various technical corrections.
This Statement is effective November 30, 1992.