Last week the Financial Accounting Standards Board (FASB) released Statement No. 162, The Hierarchy of Generally Accepted Accounting Principles.  FAS 162 seeks to correct perceived problems with prior accounting standards, in particular the AICPA’s SAS No. 69 (The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles) by directing the GAAP hierarchy to entities rather than to their auditors.  “The Board does not expect that this Statement will result in a change in current practice,” it says, but nevertheless offers this transition guidance.  The Statement will be effective sixty days following the SEC’s approval of the Public Company Accounting Oversight Board amendments to AU Section 411, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles. 

Also issued last week: FSAB Staff Position (FSP) APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).