Early results are suggesting that most organizations remain unprepared for the biggest chgange in GAAP in 50 years.
After years in the making, the Financial Accounting Standards Board (FASB) on Wednesday, July 1, will launch the new GAAP (Generally Accepted Accounting Principles) codification.
That said, today’s results from working CPAs and finance managers are all the more interesting:
Don’t be alarmed if you’re only dimly aware of the GAAP codification project. Apparently other CPAs are too. One poll showed only about one in three accountants had looked into it. Another found less than half of all CFOs and senior comptrollers had even heard of the codification project
To be sure, GAAP itself isn’t intended to change, but its structure and presentation is changing significantly. Will you be ready? Join the survey here.
.
Still, it’s probably the biggest change in the structure and organization of GAAP “in over 50 years,†according to Mara Bruce, audit manager at Schneider Downs, the regional CPA firm based in Pittsburgh, Pa.
While it isn’t intended to change U.S. GAAP, this reorganization will change how accountants refer to guidance in financial statements and any underlying memos and research, Bruce said. “It’s time to start to learn to navigate through the codification, so you aren’t left in the dark.â€
“U.S. GAAP will be completely reconfigured in a way that will vastly improve the ease of researching U.S. GAAP issues, superseding existing authoritative literature, including FASB’s original pronouncements,†FASB Chairman Robert Herz has said. “Preparers and auditors of financial statements need to familiarize themselves with the changes so that they are ready for
the switch.â€
