The FASB Accounting Standards and the Hierarchy of Generally Accepted Accounting Essay
The FASB Accounting Standards and the Hierarchy of Generally Accepted Accounting, 487 words essay example
Essay Topic: accounting
Statement No. 168 (superseded)
The FASB Accounting Standards Codificationregistered and the Hierarchy of Generally Accepted Accounting
Principles is FASB Statement No.162's replacement that was created in Jun, 2009
The Hierarchy of Generally Accepted Accounting Principles. Statement 168 that replaced Statement No.
162 is now the base of the U.S. GAAP authoritative that been accepted by the FASB to be controlled by
non-governmental entities. The recent reporting standards and non-SEC accounting are replaced by this
Codification as of the actual date. It is successful for financial statements matters for annual periods and
interim ending after September 15, 2009.
Therefore, the FASB will not create new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force (EITF) Abstracts after this Statement. However, they will maintain Accounting Standards with the option of updating the Codification, issue background information about the guidance, and give the sources for conclusions on the change in Codification. This statement of Hierarchy of Generally Accepted Accounting Principles was effective in November of 2008. It put the sources of GAAP into a hierarchy for users to apply consequently. Finally after that, all of its content will have the same power. However, Statement No. 168 is respectively applied to the financial statements of non-government companies that are given in conformity with GAAP.
Statement No. 167 replaced Amendments to FASB Interpretation No. 46(R) effective in Jun, 2009.
The reason of this statement is to update the financial reporting by companies elaborate with variable entities' interest. This statement is effective after November 15, 2009 on the reporting entities first annual reporting period. The FASB came on this project in order to address the belongings on certain provisions of FASB Interpretation No. 46 as a result of eliminating the special matter entity concept in Statement No. 166. The Board also has to address the primary concerns of some basics requirements of Interpretation 46(R).
However, this Statement maintains the scope of Interpretation 46(R) with the previous additional entities treated as special qualifying entities for purposes. The concept of these entities was eliminated in Statement No. 166. Therefore, the statement No. 167 also superseded the risks of quantitative-based and calculation of rewards to determine which enterprise, if any, provided a financial interest that controls an entity variable interest because the expectation of an access of the basic qualitative will be more efficient to identify which company has a financial interest of controlling in an entity variable interest. However, this is the way the FASB admitted to upgrade the financial reporting standards. Other additional necessity is an additional review event when deciding whether a company is a variable entity interest when there are any occurring circumstances and changes in facts. For instinct, the owner of the equity investment at risk, as a group, lose the power from voting rights to direct the activities of the entity that some characteristic impacts the economic entity's performance. There will also be ongoing assessments of whether an enterprise is the key beneficiary of a variable interest entity.