The Codification is the new accounting rulebook for all of GAAP, established by the Financial Accounting Standards Board to reorganize the entire library of historical accounting pronouncements from various sources into a single collection organized by topics, subtopics, sections and subsections. 

The Codification re-assembled the entire library of historical GAAP pronouncements into a more orderly collection of accounting rules organized by topic. It includes accounting-specific guidance from the Securities and Exchange Commission.

The SEC published interpretive guidance on the Codification that says although the Codification includes SEC guidance that applies to accounting rules, it does not supersede SEC rules or regulations. “We understand that the FASB Codification, as a service to users, includes references to some Commission rules and staff guidance,” the SEC wrote. “However, the FASB Codification is not the authoritative source for such content, nor does its inclusion in the FASB Codification affect how such content may be updated in the future.”

The interpretive guidance clarifies that the SEC is still the authority on guidance that comes from the SEC, and that such guidance still applies only to publicly listed registrants, not others subject to accounting rules.

  YouTube Clips:

FASB Accounting Standards Codification Pt.1.

FASB Accounting Standards Codification Pt.2

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