This preview shows page 1. Sign up to view the full content.
Unformatted text preview: tion
users. The SEC Sections do not contain the entire population of SEC rules, regulations,
interpretive releases, and staff guidance. For example, the Codification does not include all
content related to matters outside the basic financial statements, such as Management ’s
Discussion and Analysis (MD&A), or to auditing or independence matters.
Content in the SEC Sections is expected to change over time in accordance with the
SEC’s normal procedures for making changes to SEC rules, regulations, interpretive releases,
and staff guidance. The SEC’s normal update procedures are not changed by the inclusion of
SEC content in the Codification, and, accordingly, there may be delays between the release
of the SEC’s changes and updates to the Codification.
The Codification does not replace or affect guidance issued by the SEC or its staff for
public companies in their filings with the SEC. Furthermore, the content labeled as SEC staff
guidance does not constitute rules or interpretations of the SEC, nor does such guidance bear
official Commission approval. Which Guidance Applies to Which Entities?
Most nongovernmental entities that prepare financial statements are not regulated by
the SEC. Some nongovernmental entities, however, are regulated by the SEC, usually
because those entities previously issued securities (such as bonds or shares of stock) directly
to the general public, or because the entities’ securities currently trade among the general
In the United States, entities that are not regulated by the SEC are generally not
subject to statutory financial-reporting requirements and generally have no obligation, unless
required by lenders or others, to use financial accounting and reporting standards set by the
FASB. Even so, many such entities choose to use the FASB’s standards as documented in the
For nongovernmental U.S. entities that are not SEC registrants, the FASB is currently
the sole setter of U.S. authoritative financial accounting and reporting standards, but
View Full Document
- Fall '09