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FASB Launches Verification Phase for the FASB Accounting Standards Codification

Tuesday, January 15, 2008

On January 15, 2008, the FASB launched the one-year verification phase of the Accounting Standards Codification. During the verification period, constituents are encouraged to use the online Codification Research System free of charge to research accounting issues and provide feedback on whether the Codification content accurately reflects existing U.S. generally accepted accounting principles (GAAP) for nongovernmental entities. Users are advised that the Codification content is not yet approved as authoritative and, therefore, they must verify research results using their existing resources for the currently effective literature.

The Codification does not change GAAP; instead it reorganizes the thousands of U.S. GAAP pronouncements into roughly 90 accounting topics, and displays all topics using a consistent structure.

The FASB expects that the new structure and new system will; a) reduce the amount of time and effort required to solve an accounting research issue; b) improve usability of the literature thereby mitigating the risk of noncompliance with standards; c) provide real-time updates as new standards are released; d) assist the FASB with the research and convergence efforts required during the standard-setting process; and e) become the authoritative source of literature for the completed XBRL taxonomy.

Users who register at http://asc.fasb.org are able to review the Codification free of charge and provide specific content-related feedback at the individual paragraph level as well as general system-related feedback. During the verification period, Codification content will be updated for changes resulting from constituent feedback and new standards. The FASB will present a webcast about the Codification on March 13, 2008 from 1:00 – 2:00p.m. est. Registration information about the webcast can be found on FASB’s website at www.fasb.org.