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Unformatted text preview: ntities are not bound to follow those standards if they think IFRS or IFRS for
SMEs is better GAAP. The AICPA has recognized the IASB as an authorized standard
In contrast, federal securities laws in the United States require entities that are
regulated by the SEC, known as SEC registrants, to file their financial statements with the
SEC on a regular basis. In doing so, the SEC’s U.S. registrants must use the FASB’s
standards, subject to additional standards that the SEC has the statutory authority to set and
that apply only to SEC registrants. Lesson 3: Working with Section-Level Content 27 In general, FASB guidance applies to all nongovernmental U.S. entities, including
entities that are SEC registrants as well as entities that are not SEC registrants, with two
exceptions: If the scope of the FASB guidance explicitly excludes certain kinds of entities, it
applies only to those entities within its scope. If an entity is an SEC registrant and a conflict exists between FASB guidance
and SEC guidance, SEC guidance takes precedence over FASB guidance for that
entity. Again, the SEC guidance that is included in the Codification applies only to entities
that are SEC registrants. It does not apply to other entities. FASB versus SEC Sections
In the Codification, SEC guidance is organized in the same manner as—but separate
from—FASB guidance. The distinction between FASB and SEC guidance is made at the
Section level of the Codification content’s hierarchy.
The distinction between FASB guidance Sections and SEC guidance Sections can be
readily seen in the ―Table of Contents‖ outline that appears at the top of each Subtopic’s
page. SEC Sections are identified with the same standardized two-digit Section numbers and
titles as FASB Sections, except that the Section number is preceded by the letter ―S.‖
Section S99, SEC Materials, is also an SEC Section; there is no FASB Section that
corresponds to it. SYSTEMATICALLY BROWSING CONTENT WITHIN
In the System, after you navigate to th...
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This note was uploaded on 03/27/2014 for the course ECON 12586 taught by Professor Yorambarzel during the Fall '09 term at University of Washington.
- Fall '09