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.