FASB ASC - The Evolution of US GAAP

FASB ASC (Accounting Standards Codifications) replaced the old numerical based rule format of US GAAP (Generally Accepted Accounting Principles) a few years ago now as we continue to deal with the larger issue of how to manage the evolution of US Accounting Standards as an Industry. The dialogue of where we go on the Rules Based US GAAP vs. the Principles based IFRS which is subject to more discretionary judgement than GAAP in reporting continues.

At a later time we will return to the conversation of GAAP vs. IFRS which is an important discussion taking place in the Industry, but for now we are limiting to the scope of GAAP for purposes of this Entry.

US GAAP under FASB updates to Accounting Standards Codifications are prepared in a new layout which moves the Rule Number based system to the Topic driven reference that mirrors your Financials and then branches to Broad Transactions and Industry Standards.

In Overview the (relatively) new Accounting Standards Codifications follows the layout of:

General Principles
Presentation Standards
Assets
Liabilities
Equity
Revenues
Expenses
Broad Transactions
Industry Standards

The Assets, Liabilities and Equity Topic areas of course correspond to your Balance Sheet where the key rule and bedrock of Accounting Truth that Assets = Liabilities + Owners (or Shareholders or Partners) Equity remains constant, Ceterius Paribus - All Other Things Being Equal.

The Revenues and Expense elements reflect your Profit and Loss (P&L) yielding Net Income (or Net Loss where Expenses exceed Revenues).

The surrounding Topics correspond to underlying foundational and overlaying reporting and transactional elements and Introduce Generally Accepted Accounting Principles (GAAP), Guidance on Presentation of Financials, determine approach for Broad Transactions captured in Financials, and cover Industry Specific needs in Accounting.

When taken in the Aggregate and Applied FASB ASC = US GAAP.

The Practice of Accounting includes knowing the Rules, Interpreting them and Applying them to Financials and underlying transactions. Our hands on experience with Business Entities of All Sizes (Fortune 500, Small and Medium in size) allows us to better support your needs in Accounting, Operations, Management and Financial Reporting, Cost Accounting, Budgeting/ Forecasting, Cash Flows Analysis, Profitability, Business Analysis, Accounting Systems implementations and more. We come from the perspective of having owned and produced Financials for operations and which provides additional insight  to connect with the operational accounting perspective and to know the needs of Board Members, CEOs, COOs and key management Financial Decision Making professionals. While all leaders have unique interests we readily adapt our focus to highlight your needs in Management Decision Making support services in Advisory.

DCarsonCPA.com is the web presence of Dean T. Carson II, CPA here to support the line of Financial Decision Making working with Government, Industry, Business, Non Profits and Individuals. Learn more at www.dcarsoncpa.com or e-mail us at info@dcarsoncpa.com .

Federal Home Loan (FHL) Banks Audit Requirements

Part 1274 Financial Statements of the Banks

§ 1274.2 Audit requirements.

(a) Each Bank, the OF, and the FICO shall obtain annually an independent external audit of and an audit report on its individual financial statement.

(b) The OF audit committee shall obtain an audit and an audit report on the combined annual financial statements for the Bank System.

(c) All audits must be conducted in accordance with generally accepted auditing standards and in accordance with the most current government auditing standards issued by the Office of the Comptroller General of the United States.

(d) An independent, external auditor must meet at least twice each year with the audit committee of each Bank, the audit committee of OF, and the FICO Directorate.

(e) FHFA examiners shall have unrestricted access to all auditors' work papers and to the auditors to address substantive accounting issues that may arise during the course of any audit.

As of Read Date 10/28/11 Federal Bank Rules are subject to Change and Update and must be verified as relying or applying. These rules pertain specifically to Federal Home Loan Banks.

DCarsonCPA.com is the Practice of Dean T. Carson II, CPA here to support Business, Non Profits and Individuals on Traditional and Strategic CPA Services as available under applicable Rules and also available for Decision Makers at the Board and Senior Executive Levels. We partner with a team of highly skilled professionals and meet your needs in efficient manners in a time where expenses matter and the value add on knowledge can definitely benefit Financial Decision Makers. Learn more at www.dcarsoncpa.com and /or reach us at info@dcarsoncpa.com .

FAF - FASB & GASB The Framework of Accounting for Corporations and State and Local Financials.

FAF is the Financial Accounting Foundation, while their website appears to be temporarily out of commission at the time of this write up. We will return in the future to update this link.

FAF is the oversight body for FASB & GASB:

FASB is the Financial Accounting Standards Board most responsible for Public Company Accounting Standards that we call US GAAP (United States Generally Accepted Accounting Principles). You can find FASB at http://www.fasb.org/home

GASB is a closely related but less accessible set of Standards referred to as Governmental Accounting Standards Board. GASB is less accssible due to a lesser degree of Funding and we encourage you to contribute to GASB Funding to better facilitate online access to refrence sources that are key to understanding State and Local Financials. GASB is NOT the standard setter for Our National Government, the US National GAAP for Government Standards are promulgated by the FASAB which we will cover at some later point.

GASB - Governmental Accounting Standards Board can be found at http://gasb.org/

Whether considering FASB or GASB, you are dealing with the Authoritative Rule sets for Accounting and Reporting in related Financial statements.   This is only an introduction so check back with us soon for more as we expand on our coverage of ALL Manners of Accounting, Reporting, Analysis, Compliance and Technologies that pertain to our Industry in the Aggregate.

We are DCarsonCPA.com the web presence of Dean T. Carson II, CPA your Solution Set for Business, Non Profit and Individual Accounting, Taxation, Compliance, Advisory and more. We focus Our skills on connecting the Line of Government, Industry, Business, Non Profit and Financial Decision Making - it all matters and it all roles into your Family Finances at the end of the day, for better or worse. Learn more at www.dcarsoncpa.com or e-mail us at info@dcarsoncpa.com