Panel Expected to Finalize Private Company Financial Reporting Model Recommendations

BY ALEXANDRA DEFELICE

The blue-ribbon panel on private company financial reporting on Friday appears set to finalize its recommendations that the Financial Accounting Foundation (FAF), FASB’s parent organization, move to U.S. GAAP with modifications and exceptions for private companies and that those standards should be set not by FASB but by a separate board under FAF’s oversight.

 

A majority of panel members, including AICPA President and CEO Barry Melancon, supported this model and structure at an October panel meeting.

 

At Friday’s meeting, which will be held at FASB’s offices in Norwalk, Conn., the panel will discuss the structure and protocols of a new board, with a particular focus on its mission, roles, composition, budget and funding.


Members also will address what other short-term and/or long-term actions may be necessary by FAF, FASB, or both and whether the panel needs to discuss any other recommendations.

Friday’s meeting is expected to be the final meeting of the 18-member panel, which was created in December 2009 to provide recommendations by the end of 2010 on the future of U.S. accounting standards for private companies.

 

The panel is a joint effort by the AICPA, FAF and the National Association of State Boards of Accountancy.

 

The public portion of Friday’s meeting will take place from 8 a.m. to noon EST, and will be accessible via live audio stream that will be available starting immediately before the meeting on FASB’s website.

 

The 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. Rick Anderson, CEO of Moss Adams LLP, is the panel’s chairman.

 

A copy of the full agenda is available here .

 

The JofA will cover the meeting via its Twitter handle, AICPA_JofA , with hashtag #brp. Visit journalofaccountancy.com for complete coverage following the meeting.

 

—Alexandra DeFelice ( adefelice@aicpa.org ) is a JofA senior editor.

 

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