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FASB 32, made obsolete by SAS 69, may be rescinded.

The Financial Accounting Standards Board proposed rescinding its Statement no. 32, Specialized Accounting and Reporting Principles and Practices in AICPA Statements of Positions and Guides on Accounting and AUditing Matters, and its related pronouncements.

Statement no. 32 specifies that certain American institute of CPAs statements of position and guides are preferable for justifying a change in accounting principles, as required by Accounting Principles Board Opinion no. 20, Accounting Changes.

However, FASB Project Manager Judith Noe explained, "the AICPA changed the hierarchy of generally accepted accounting principles with the issuance of Statement on Auditing Standards no. 69, The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting Principles" in the Independent Auditor's Report. She added that SAS no. 69, which spells out the accounting standards and guidelines that make up GAAP, makes FASB Statement no. 32 unnecessary.

Generally, SAS no. 69 requires entities to adopt the accounting principles in AICPA pronouncements effective after March 15, 1992.

If adopted as a final statement, the FASB proposal becomes effective immediately.
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Title Annotation:Statement on Auditing Standards
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Sep 1, 1992
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