The new code: using and applying FASB's new system of Standards.

• Author: Harden, Stuart H.
• Position: Regulatorynews

as of July 1, FASB's Accounting Standards Codification became the sole source of authoritative U.S. generally accepted accounting priniciples. This article explores two of the practical implications of this change: 1.) How we think about and refer to authoritative literature; and 2.) How to research issues as a part of our daily work.

The New Way of Thinking

We have all talked with clients and colleagues about SFAS 13 to describe accounting for leases, or SFAS 5 to describe accounting for contingent gains and losses, and have made references to this literature when preparing or attesting to footnote disclosures. In the Codification, however, accounting for leases is described in Topic 840 and accounting for contingent gains and losses is described in Topic 450. Accordingly, we will need to start thinking about Codification Topics instead of SFAS, FIX, EITF, ARB or APB numbers.

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Each Topic incorporates all authoritative literature on a subject and is updated for all amendments in real time. We can go to a Topic within the Codification and not worry that some EITF consensus we may not be aware of has changed the literature. And I can stop writing update notes in my dog-eared copy of SFAS 133.

As we become accustomed to referring to the new Codification Topics, Subtopics, Sections and Subsections, we will be able to find our favorite SFAS by using the "By Standard" search option. You can review how to do this by reading "Countdown to Codification Alert No. 9," available on FASB's website, www.fasb.org. This and other alerts give you great practical tips on using the Codification. However, this feature, like many-described in this article, is only accessible when using the Codification's Professional View mode, and does not exist within the Basic View (see Figure 1).

a professional view

Figure 1 Incremental Advantages Functionalities Combining and/or Allows for more efficient gathering of complete Joining information relevant to a particular subject matter Sections through the combining of all pertinent sections and subtopics onto one screen or printout. Printing, Provides users basic functions to extract key Extracting and information on an as needed basis, including E-mailing e-mailing, cut and pasting, and printing US GAAP. Word Searching Allows users the ability to locate relevant guidance Capabilities by using key words or phrases. Coding Searches Facilitates quicker access to relevant Codification sections. Archiving...