Mfa Web Seminar Fasb Accounting Standards Codification Jun 24 2009

FASB Accounting Standards Codification

Michael Piessens, CPA, CMA, CFMRob Busch, CPA

MFA – Moody, Famiglietti & Andronico, LLPCopyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.

http://asc.fasb.org/home

Copyright 2009. Moody, Famiglietti & Andronico, LLP. All Rights Reserved.2

Seminar Logistics

All attendees are muted during the presentation– We cannot hear you

Audio difficulties– Hang up and redial 312-878-0211

– Enter access code 302-245-870

– Enter the Audio Pin displayed on your Attendee Control Panel

We will take questions at end of presentation– During the presentation you may type questions into the Question

Screen on your Attendee Control Panel – click Send Privately

CPE credit


Our Presenters

Michael Piessens, CPA, CMA, CFM

Manager of Financial Reporting

MFA - Moody, Famiglietti & Andronico

Robert Busch, CPA

Senior Audit Manager

MFA - Moody, Famiglietti & Andronico


Agenda

Overview

Website Layout & Functionality

Available Tools

Next Steps / Implications

Resources

Q&A


Overview — What It Is

An online repository and search system that integrates and categorizes existingU.S. GAAP for non-governmental entities

Includes all guidance by standard setters, (FASB, AICPA, EITF, etc.) within levels A through D of U.S. GAAP hierarchy

Also includes relevant content from SEC / SEC staff


Overview — What’s Included

FASB Statements, Interpretations, Technical Bulletins, Staff Positions, Staff Implementation Guides, FAS 138 ExamplesEITF Abstracts and Topic DDIG IssuesAPB OpinionsARB’s



Accounting Interpretations

AICPA SoP’s, Audit & Accounting Guides, Practice Bulletins, Technical Inquiry Service (Software Revenue Recognition)

Reg. S-X

Financial Reporting / Accounting Series Releases



Interpretive Releases

SEC Staff Guidance in SAB’s, EITF Topic D, SEC Staff Observer Comments (at EITF meetings)


Overview — Replaces FAS 162

Hierarchy of GAAP – replacement of FAS 162

Establishes 2 GAAP levels: authoritative and non-authoritative


Overview — Replaces FAS 162

Codification will become the single source of authoritative guidance for U.S. accounting and reporting standards other than guidance by SEC

Effective July 1, 2009 for interim and annual periods ending after September 15, 2009 (i.e., for periods that begin on or after July 1, 2009)


Overview — Benefits

One stop shopping for all authoritative guidanceExisting guidance can be updated and new guidance incorporated by topical area instead of by standard typeCodification users will be able to find a topic and ensure they are accessing all information relevant to that topic


Overview — Structure

Organized into 5 areas covering ~90 topicsArea Topic

General Principles & Objectives GAAP

Presentation B/S, I/S, etc.

F/S Accounts (Assets, Liab., Equity, Rev., Exp.)

Receivables, Rev. Rec., Inventory, Debt, etc.

Broad Transactions Consol., Leases, etc.

Industries Airlines, Software, Entertainment, etc.



Topics include one or more Sub-topics– (e.g., Under the “Leasing” Topic are the “Overall”,

“Operating Leases” and “Capital Leases” Sub-topics

Sub-topics include one or more Sections– (e.g., “Scope”, “Recognition”, “Measurement”,

“Disclosure”, etc.)

Sections can include one or more Sub-sections– (e.g., “Lessor vs. Lessee Accounting”)



Structure of Referencing

ASC XXX-YY-ZZ-PP

XXX = TopicYY = Subtopic, ZZ = Section

(Note: “S” preceding the Section no. re: SEC content)

PP = Paragraph

Note: Referencing structure doesn’t include “Sub-sections”. It references “Paragraphs” within “Sections”.



Structure of Referencing

Sample References for Leases :

– ASC 840 = Leases (Topic)

– ASC 840 - 10 = Overall (Sub-topic)

– ASC 840 - 10 - 15 = Scope (Section)

– ASC 840 - 10 - 50 = Disclosure (Section)


Overview — Referencing

Referencing within Financial Statements– Once an entity adopts Codification, any

references within its financial statements to specific guidance should be to that for the Codification, not the original pronouncements

– Financial statements for periods beginning on or after July 1, 2009 should reflect the new referencing


Overview — Disclosure LanguageAccounting for Long-Term Contracts — Example of Before vs. After

– Under Current Literature (pre-July 1, 2009) - Reference: AICPA SOP 81-1…the Company currently accounts for revenue recognition of its long-term contracts under the percentage-of-completion method in accordance with provisions of AICPA Statement of Position No. 81-1, Accounting for Performance of Construction-Type and Certain Production-Type Contracts…

– Under FASB Codification (as of July 1, 2009) - Reference: FASB ASC 605-35-25… the Company currently accounts for revenue recognition of its long-term contracts under the percentage-of-completion method in accordance with provisions of FASB ASC 605-35-25 (Prior authoritative literature: SOP 81-1, Accounting for Performance of Construction-Type and Certain Production-Type Contracts) …


Overview — Disclosure Language

Overview – Disclosure Language Before vs. After (Example)



Home Page



Navigation - Area, Topic, Sub-topic, etc.

AREA

TOPIC SUB-TOPIC



“Join All Sections” Feature– Use to join all Sections within a Sub-topic. [i.e.,

Sections 00, 05, 15…S99 within Sub-topic 10 (Overall) of Topic 320 (Investments—Debt and Equity Securities)]

– Useful tool for transition

“Combine Sections” Feature– Similar to “Join” feature



“Join Sections” Feature– Brings together Sections from multiple Sub-topics

into one document– Example — the “Disclosure” Sections for all Sub-

topics within the “Revenue Recognition” Topic

“Cross Reference” Feature– Enter either a historical GAAP reference or a

Codification reference– Receive a report showing the historical GAAP

references and a link to the current Codification guidance


Website Layout & Functionality“Printer Friendly with Sources” Feature– Enables user to print current Codification content

with notations of the sources from the historical GAAP literature

– Can provide a very easy and user-friendly reference tool for transition

“Master Glossary”– Provides listing of all defined terms in the

Codification– May include multiple definitions for the same term

(i.e., public entity)



“Future Codification Updates”– Published as Codification Update Instructions

(“CUI’s”)– Will contain a new standard, along with instructions

regarding how the new standard will be incorporated into the Codification


Available Tools

FASB website (http://fasb.org)– Basic view (no charge, limited functionality,

content only)

– Enhanced view (requires subscription, full functionality)



Implementation will be challenging– New structure will take time to learn

– Old standards may be split over several new topics

Review your financial statements to determine what will need to change and how

Visit FASB Codification website and become familiar with its structure and functionality



Update policies, memo’s, bases for conclusions, etc.

Determine which tool you will use to access the Codification

Discuss questions and concerns with MFA


Resources

FASB– Notice to Constituents

(http://asc.fasb.org/home)

– Online Tutorial(http://asc.fasb.org/home)

– Codification Q&A(http://fasb.org/cod_project/Cod_overview_12-08.pdf)



http://fasb.org/cod_project/Cod_overview_12-08.pdf




Resources

AICPA– FASB Codification Developments – 2008:

Strengthening Financial Management and Reporting(http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/Accounting/FinancialReporting/PRDOVR~PC-029209/PC-029209.jsp)

http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/Accounting/FinancialReporting/PRDOVR~PC-029209/PC-029209.jsp





Questions

Michael [email protected]

Robert [email protected]


MFA – Moody, Famiglietti & Andronico

IRC Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Mfa Web Seminar Fasb Accounting Standards Codification Jun 24 2009

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