FASB Issues GAAP Hierarchy Exposure Draft

The Financial Accounting Standards Board (FASB) has issued an Exposure Draft titled “The Hierarchy of Accepted Accounting Principles,” as part of an effort to improve the quality of accounting standards and the standard-setting process.

Recently, the Securities and Exchange Commission (SEC) has reaffirmed the FASB as the designated private-sector standard-setter for public companies. The FASB, in turn, has implemented procedures to narrow the types of accounting principles it issues. The Statement proposed in the Exposure Draft, along with these efforts, is a step toward the simplification of the standard setting process whose goal is having one process and one form of guidance.

The Exposure Draft carries forward the GAAP Hierarchy ranking the relative authority of accounting principles from multiple standard-setters, currently residing in the American Institute of Certified Public Accountants (AICPA) Statement on Auditing Standards No. 69 (SAS 69).

“The proposed statement is an important first step towards improving the GAAP hierarchy. Several other FASB projects, such as the codification and retrieval project, aim to simplify standards and the standard-setting process. This proposed statement facilitates those future improvements,” FASB Chairman Robert Herz said in a written statement about the Exposure Draft.

The comment period for the Exposure Draft ends June 27, 2005. A copy of the Exposure Draft can be obtained from the FASB website.

You may like these other stories...

Individuals interested in reviewing the proposed 2015 US Generally Accepted Accounting Principles (GAAP) taxonomy from the Financial Accounting Standards Board (FASB) have until October 31 to submit their written comments....
Ernst & Young 2013 audit deficiency rate 49%, regulators sayMichael Rapoport of the Wall Street Journal reported on Thursday that the Public Company Accounting Oversight Board (PCAOB) found deficiencies in 28 of the...
PwC must face $1 billion lawsuit over MF Global adviceA federal judge on Wednesday ordered PricewaterhouseCoopers (PwC) to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.