FASB Accounting Standards Codification TM

1. FASB Accounting Standards Codification TM Thomas Hoey Director of the FASB Codification and XBRL Projects April 30, 2009

2. Agenda • Codification Project • XBRL Project • Brief Demo

3. Current State FASB Staff Positions FASB Interpretations FASB Statements Accounting Principles Board Opinions Accounting Research Bulletins FASB Technical Bulletins AICPA Statements of Position AICPA Audit and Accounting Guides EITF Abstracts (and issue summaries) EITF Appendix D AICPA Practice Bulletins FASB Staff Implementation Guidance AICPA Technical Questions and Answers AICPA Audit Risk Alerts FASB Concepts Statements AICPA Accounting Interpretations AICPA Issues Papers SEC S-X Rules SEC S-K Items SEC Speeches—Topics Covered SEC SAB Codification Topics SEC ASR / FRR Codification Sections Note: Not all of the above are level A-D GAAP and therefore are not in the FASB Accounting Standards Codification

4. Why a Codification? • Multiple types of standards, multiple standard setters, multiple indexing schemes, and different levels of authority make it difficult to retrieve all relevant U.S. GAAP • Constituent concern that U.S. GAAP is overly confusing and difficult to research

5. Need for change • User survey - Over 1,400 participants • 80% believe the structure of U.S. GAAP is confusing • 85% believe that research takes an excessive amount of time • 95%agree that the FASB should pursue a codification • Structure survey • 90% agree that the structure is easy to understand and will simplify access • 97% believe that the structure is an improvement or significant improvement when compared with existing GAAP • Research system survey – over 3,200 participants • Priority – Topic, Search, GoTo • 90% expect to access electronically rather than hard copy

6. What Is the Codification? • Current level a-d U.S. GAAP issued by a standard setter codified into a topically-organized format • NOT intended to change U.S. GAAP • Upon approval by the FASB, it will be the authoritative source for U.S. GAAP and will supersede existing sources of U.S. GAAP • Any sources of U.S. GAAP not included in the Codification will be NON-authoritative • On-line Codification Research System designed for the topically-organized content to improve retrievability

7. Content • Codification • includesauthoritative guidance • for example, standards sections, implementation guidance, and so forth • excludes non-authoritative or redundant content • for example, much of basis for conclusions • Codification Research System • provides a mapping feature to help users identify where standards are used in the Codification

8. SEC Content • Updated by the SEC • Included in Codification as separate SEC Sections • SEC guidance is required only for SEC registrants • Many private companies do not want SEC guidance • SEC Material Sections include the full text of the relevant guidance

9. How Is the Codification Structured? • Terminology is important for effective communication • Areas—Groupings of topics • General Principles • Presentation • Financial Statement Accounts • Assets, Liabilities, Equity, Revenue, Expense • Broad Transactions • Business Combinations, Leases, etc. • Industry • Topics—Broadest categorization of related content • Subtopics—Distinguished by type or scope • Sections—Nature of the content, such as recognition, measurement, disclosure, and so forth

10. Illustration Leases Topic Overall Operating Leases Capital Leases Subtopics Sections Scope Disclosure Scope Disclosure Scope Disclosure Lessees Lessees Lessees Lessees Lessees Lessees Subsections Lessors Lessors Lessors Lessors Lessors Lessors Note: This is for illustration only and does not include all Topics, Subtopics, Sections and Subsections.

11. Updating the Codification • The FASB will develop Codification update instructions to document changes to the Codification • When the Codification becomes authoritative • The FASB will continue to issue individual standards in the form of Codification Updates numbered as Year – Sequence • For example, FASB Codification Update 2009-03 • The FASB will update the Codification concurrent with the release of a Codification Update • Exposure drafts will contain proposed changes to the Codification • Current and transitional text presented together so that users can view both current and transitional text concurrently without the need to search for it

12. Status and Timing • System availability - http://asc.fasb.org • Available since January 2008 • Over 55,000 registered users • Currently processing Codification Updates for verification feedback and new standards • Roughly 1,500 pieces of feedback by cutoff date • Board actions • Met February 25, 2009 • Exposure draft released March 27, 2009 • Expected to be authoritative as of July 1, 2009

13. Demonstration

14. XBRL Background • During the conceptual design phase of the Codification in 2004, it was determined to establish the Codification as the designated authoritative electronic reference source for tagged XBRLfinancial statements (i.e., interactive data)

15. The Vision Literature Research Financial Statement Research FASB Accounting Standards Codification "Edgar 2" Tagged XBRL Financial Statements Link to Literature

16. XBRL Project • US GAAP Taxonomy contains roughly 13,000 elements • Elements currently reference existing standards that will be superseded by the Codification • Project team established links to the Codification • Codification will display XBRL elements linked to particular paragraphs • Going forward, FASB and XBRL-US coordinate taxonomy changes

17. End