Accounting rule change

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Until now, accountants have had to check as many 20 differenr sources to find the answersw totheir questions. It isn’t easy because the Financial AccountintStandards Board, the Conn.-based group that promulgates the regulations, organizefd the regulations in chronological order based on when the rulesd were adopted. Under the new system, which goes into effect July 1, FASB will group its rules by topic, a change that is overdue, accountantzs say. “Now, if you have an issue over a particuladr type of asset or it will be a lot easiedrto find,” said Scottf Rodgville, a director at Schiller & Gardyn P.A., an Owingxs Mills certified public accounting firm.
“It will be a lot less like doinf a Google search for your The FASB rules themselves arenot changing, said Andy chairman of the accounting and auditing departmenty at Weil, Akman, Baylihn & Coleman P.A., a Timonium CPA firm. It doesn’rt change the generally accepted accounting principles used in preparing financial he said. “It just reorganizes it and makes it simpleeto use,” he said. Still, Garretr called the upcoming change “the most significant restructuring” he has seen in his 20 years in accounting. The change comes as FASB prepareas to align therules U.S.
accountants use in preparinf financial statements for publicly tradedd companies with international rules startingin 2014. Thoswe rules already are being used in European Uniojn countries and will go into effect in Canada in 2011 and Mexicopin 2012. The accounting licensing exam will begitesting would-be CPAs on the International Financial Reporting Standardss starting in 2011, said J. Thomas Hood III, CEO of the 10,000-membe Maryland Association of Maryland CPAs are interested in the upcoming Hood said. His group has been running continuin education courses to keep its memberw informed about thenew developments.
Clients, however, may not appreciat e the need for the move to international accounting saidWeil Akman’s Garrett. “I think it’s going to create a lot of work for Garrett said.