SEC's SAB 114 Released; Conforms SAB Codification to FASB's Cod.

Yesterday, the SEC released Staff Accounting Bulletin No. 114, which:

revises or rescinds portions of the interpretive guidance included in the codification of the Staff Accounting Bulletin Series. This update is intended to make the relevant interpretive guidance consistent with current authoritative accounting guidance issued as part of the Financial Accounting Standards Board’s Accounting Standards Codification [ASC].

Weighing in at 358 pages, SAB 114 states upfront (pg. 2 of the SAB) that it:

• amend[s] [the Staff Accounting Bulletin Series] to update authoritative accounting literature references to the FASB ASC throughout,
• [makes] several conforming formatting changes ... for consistency across SAB topics, and that
• due to the number of these changes, the SAB Series is represented in its entirety in this release.

Importantly, SAB 114 states:

All of the changes are technical in nature, and none of the changes are
intended to change the guidance provided in the SAB Series.

My two cents (I remind you of the disclaimer posted on the right side of this blog): Although the intent of SAB 114 as stated by the SEC staff in the sentence copied above was to make conforming, technical changes - and not to change any of the (substantive) guidance provided in the SAB Series - those applying, auditing, or otherwise making use of the SAB's and the resulting accounting treatment should consult SAB 114 directly. And, props to the ever-watchful Broc Romanek of TheCorporateCounsel.net Blog for flagging this new SAB earlier today.

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