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U.S. GAAP
Financial Accounting Review

[U.S. GAAP before the Codification]
Statement of Financial Accounting Standards (SFAS) No. 168, June 2009,
The FASB Accounting Standards Codification and the Hierarchy of GAAP

1. Two levels of U.S. GAAP
(1) Level 1: authoritative GAAP: Codification
(2) Level 2: nonauthoritative GAAP: Others

2. Sources of U.S. GAAP
(1) Nonpublic Entities
--> Accounting Standards Codification by FASB is
--> the single source of authoritative U.S. GAAP

(2) SEC Registrants
--> Both (2a) and 2(b) are the sources of authoritative U.S. GAAP
(2a) Accounting Standards Codification by FASB
(2b) SEC Rules

3. Effective for periods ending after September 15, 2009

4. A Brief History of U.S. GAAP

(1) In 1939, American Institute of Accountants (AIA) formed
--> the Committee on Accounting Procedure (CAP)

(2) The Committee on Accounting Procedure (CAP) issued
--> 51 Accounting Research Bulletins (ARB)

(3) In 1957, American Institute of Accountants (AIA) was renamed as
--> American Institute of Certified Public Accountants (AICPA)

(4) In 1959, American Institute of CPAs (AICPA) formed
--> the Accounting Principles Board (APB)

(5) Accounting Principles Board (APB) issued
--> 31 APB Opinions

(6) In 1973, Financial Accounting Standards Board (FASB) was formed

(7) Financial Accounting Standards Board (FASB) issued
--> 168 Statements of Financial Accounting Standards (SFAS)

(8) Effective July 1, 2009
--> Accounting Standards Codification (ASC) by FASB is
--> the single source of "authoritative" U.S. GAAP

5. Accounting Standards Codification (ASC) by FASB integrated
all previous sources of U.S. GAAP including
--> Accounting Research Bulletins (ARB)
--> Accounting Principles Board (APB) Opinions
--> Statements of Financial Accounting Standards (SFAS)
--> AICPA Statements of Position (SOP)
--> FASB Emerging Issue Task Force (EITF) Issues
--> SEC Staff Accounting Bulletins (SAB) and other SEC rules