CCH Learning Center

Description:

This course provides a background of FASB No. 162, The Hierarchy of Generally Accepted Accounting Principles, as well as the scope and rules of the Statement.

The course reviews how the SEC and FASB have worked toward improving the quality of accounting standards as well as the standard-setting process. As part of that effort, the SEC and FASB have focused on improving the conceptual framework, re-defining the GAAP hierarchy, and moving towards more objectives-oriented standards.

In response to an SEC study, the FASB concluded that it had established goals to issue the GAAP hierarchy as a FASB standard, re-categorize the existing GAAP hierarchy into two levels of accounting literature (authoritative and nonauthoritative), and elevate the conceptual framework within the GAAP hierarchy. As a result, the FASB has improved the GAAP hierarchy found in SAS 69.