SEC staff issues interpretive guidance on the FASB Codification

News Brief

By Cydney Posner

In light of the new FASB Codification (see the posting on 6/26/09), the SEC has posted interpretive guidance advising that, concurrent with the effective date of the Codification, references in the SEC's rules and staff guidance to specific standards under U.S. GAAP should be understood to mean the corresponding reference in the Codification.

 The release notes that the FASB Codification includes a cross-reference finding tool to assist users in identifying where previous standards are located in the Codification. (Don't suppose they've actually tried to use the "tool"? "Assisting users" might be a bit of an exaggeration as applied to any accounting civilian.) On a longer-term basis, the staff also intends to update specific references to specific standards under U.S. GAAP in the SEC's rules and guidance. In addition, users should be aware that, while the FASB Codification includes references to some SEC rules and staff guidance, the Codification is not the authoritative source for that content.

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Cydney Posner Special Counsel, San Francisco
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