FASB No. 168:

GAAP hierarchy reduced to two levels

one that is authoritative (in the Codification) and
one that is nonauthoritative (not in the Codification).

The result of the Codification is that all authoritative literature related to a particular topic is now in one place.


The Codification

  • NOT intended to change U.S. GAAP
  • supersedes existing sources of U.S. GAAP
  • any prior sources of U.S. GAAP not included in the Codification are not authoritative.
  • is the authoritative source for U.S. GAAP in addition to guidance issued by the SEC.
  • eliminates the four prior levels of the U.S. GAAP

Codification Content

Includes authoritative guidance (for example, standards sections, implementation guidance, and so on)

Excludes content deemed redundant or nonauthoritative (for example, much of basis for conclusions)

The following literature is included in the Codification:
  • FASB Statements, Interpretations, Technical Bulletins, Staff Positions, Staff Implementation Guides...
  • EITF Abstracts...
  • Derivative Implementation Group Issues
  • Accounting Principles Board Opinions
  • Accounting Research Bulletins
  • FASB Accounting Interpretations
  • AICPA Accounting Statements of Position, Practice Bulletins, incremental accounting guidance from Audit and Accounting Guides, and Technical Inquiry Service questions and answers (for Software Revenue Recognition only)
  • Select SEC guidance
The Codification does not include the following:
  • Guidance for non-GAAP matters such as OCBOA (including cash basis, income tax basis, or regulatory accounting principles).
  • Governmental accounting standards.
  • Standards that were outdated or superseded on December 31, 2008 (for example, FAS 141 is not included because FAS 141R is effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008).