A blue-ribbon panel will meet Friday at the AICPA’s New York office to possibly recommend alternative models and structures related to GAAP standard setting for private companies.
The panel will receive a brief overview of the more than 140 public comments FASB received in response to a series of questions relating to private company financial reporting and will also receive an update on recent changes at FASB.
Discussion and debate will focus on the following:
- Generally, which model for setting private company financial reporting standards would be preferable in the long run and why?
- Given the timing of achieving that model, are there other models (or aspects of other models) that should be considered as intermediate steps and why?
- What short-term and/or long-term structural changes are necessary in connection with the preferred model (or combination or sequence of models) and why?
- What other short-term and/or long-term actions may be necessary by FASB, the Financial Accounting Foundation (FAF), FASB’s parent organization, or both?
At the end of the meeting, the panel is expected to make recommendations for the model/structure with the goal of reaching “substantial consensus.”
Earlier this week, AICPA President and CEO Barry Melancon, who is on the panel, issued a statement saying:
“We anticipate … (the panel) will vote to recommend a new model of financial reporting that will generate truly differentiated standards for private companies. Crucial to the effective implementation of that recommendation is establishing a separate standard-setting board under the Financial Accounting Foundation to provide a comprehensive solution to the problem of private company accounting. This has been a long time coming and I believe the case for a separate private company standards board under the oversight of the FAF is stronger than ever.”
Read a Q&A with AICPA Chairman Robert R. Harris, CPA/CFF, describing the critical issues at stake regarding both the standards and the standard-setting structure.
Friday’s meeting will be the fourth meeting of the 18-member panel, which was created in December 2009 to provide recommendations by the end of the year on the future of U.S. accounting standards for private companies.
The panel is part of a joint effort by the AICPA, the FAF and the National Association of State Boards of Accountancy.
The public portion of Friday’s meeting will take place from 9:15 a.m. to 4 p.m. Eastern and will be accessible via live audio stream that will be available starting roughly 15 minutes before the meeting.
The 18 panel members and participating observers represent a cross section of financial reporting constituencies, including lenders, investors and owners, as well as preparers, auditors and regulators. It is chaired by Rick Anderson, CEO of Moss Adams LLP.
A copy of the full agenda is available here.
The panel’s final meeting will take place Dec. 10 in Norwalk, Conn.
—Alexandra DeFelice ( email@example.com ) is a JofA senior editor.
More from the JofA: