New GAAP Codification

Sunil Thukral's Profile
Sunil Thukral (Technical Accounting/Reporting, Consultant)
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Sunil Thukral
Title: Technical Accounting/Reporting
Company: Consultant
| Oct 8, 2009

How is everybody coping with new U.S. GAAP codification? I am sure it would take some time before we all get used to the new numbering. Do share your experiences with me. I am posting the link for a 2 page simple guide, which would help you with transitioning to US GAAP codification. http://ugaap.com/blog/?p=234

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John Kogan's Profile
John Kogan (CEO/CFO, Proformative, Inc.)
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John Kogan
Title: CEO/CFO
Company: Proformative, Inc.
| Oct 9, 2009

Resources tab is where folks primarily look for tools and guidance of this sort. You can go to the Resources tab up top or just hit the "Create Resource" button in the right side column on this page.

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Scott Lane's Profile
Scott Lane (CFO and CRO, TPG Credit Management)
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Scott Lane
Title: CFO and CRO
Company: TPG Credit Management
| Nov 5, 2009

Regarding your question on coping, I think it depends on the nature of one's organization. SEC registrants who file quarterly reports have already had to deal with it.

For non-public companies it will likely just be a year-end exercise when drafting the GAAP financial statements and footnotes in particular. Since my company is private I have not really thought about it yet, will be something I will consider in January of 2010.

Ultimately it should just be a referencing and disclosure translation issue as the actual GAAP has not changed.

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kimberly kelly's Profile
kimberly kelly (Consultant)
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kimberly kelly
Title: Consultant
Company:
| Nov 6, 2009

While the intent was not to change GAAP, some of the language was changed. For example "should" became "shall". This could have an impact if your organization interpreted "should" as "not mandatory"....

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Sunil Thukral's Profile
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Sunil Thukral (Technical Accounting/Reporting, Consultant)
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Sunil Thukral
Title: Technical Accounting/Reporting
Company: Consultant
| Nov 9, 2009
Hi Kimberly, Thanks for the comments - can you please point to the exact topics/sections where the language has changed, which in your opinion would cause potential problems in the application of U.S. GAAP.
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Scott Lane's Profile
Scott Lane (CFO and CRO, TPG Credit Management)
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Scott Lane
Title: CFO and CRO
Company: TPG Credit Management
| Nov 10, 2009
I could be wrong but I don't think there should be any actual changes to GAAP here. Perhaps there is the potential for new iterpretation in some spots but I don't believe that was the intention of the codification project. Below is from PwC: The FASB has adopted the FASB Accounting Standards Codification (the Codification) as the single authoritative source for U.S. GAAP, replacing the mix of accounting standards that have evolved over the last 50+ years. The Codification is effective for financial statements that cover interim and annual periods ending after September 15, 2009. While not intended to change U.S. GAAP, the Codification significantly changes the way in which accounting literature is organized. It's now organized by accounting topic, which should enable users to more quickly identify the guidance that applies to a specific accounting issue.
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Barrett Peterson's Profile
Barrett Peterson (Manager, Actg Stnds & Analysis, TTX)
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Barrett Peterson
Title: Manager, Actg Stnds & Analysis
Company: TTX
| Nov 5, 2011

We are a larger private compeny but resprot on a substantially public company basis, and have had no difficulties. I still do not have the sections numbers memorized as well as some of the prior standards [from more than 30 years of use], but have a hand cross reference document suitable for framing from our auditors at PwC

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Ernie Humphrey's Profile
Ernie Humphrey (VP, Educational Programs, Proformative)
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Ernie Humphrey
Title: VP, Educational Programs
Company: Proformative
| Nov 6, 2011

It would be great if we could share this cross reference document with the Proformative Community. If you can e-mail it to me at EHumphreyatproformative [dot] com then I can get it posted, and I will post the link in this dicussion stream once we get it posted.

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Jeffrey Werner's Profile
Jeffrey Werner (Consultant, WCG)
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Jeffrey Werner
Title: Consultant
Company: WCG
| Nov 7, 2011

The FASB has a free cross reference tool on their website. Select the old standard in a drop down box and the new Codification references are returned. Select the Codification reference and the old standards are returned.

You need to register for the free basic level tool.

http://asc.fasb.org/home

When logged in select Cross Reference

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