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Codification

Welcome to a codified world.

The Accounting Standards Codification — the FASB's effort to reorganize thousands of U.S. GAAP pronouncements under about 90 accounting headings — is now, in the words of the AICPA, “the authoritative source of non-governmental accounting literature.”

We all knew this was coming, of course, but just to bring the whole thing full circle, a new AICPA article reviews some of the resources that explain the Codification in detail. They include:

  • Here are some other resources we've compiled over the past view weeks.
  • It's worth noting that not everyone is thrilled with the Codification. Trinity University's Bob Jensen wonders what will happen to the project if or when international financial reporting standards take effect. He is also curious about the way XBRL is aligned with pre-codified information — and about the effort and expense in bringing XBRL in line with the new codified world.

    Interesting questions. It will be equally interesting to see how this all shakes out. For now, though Codification is king.

    Are you ready?

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