FASB’s parent organization, the Financial Accounting Foundation (FAF), is considering a report recommending a new standard-setting board to establish exceptions and modifications to U.S. GAAP for private companies.
This discussion follows the culmination of a year’s worth of work by a blue-ribbon panel, formed in December 2009 as part of a joint effort by the AICPA, FAF and the National Association of State Boards of Accountancy, to examine private company financial reporting.
Here is an archive of JofA news and feature articles about the blue-ribbon panel for private company financial reporting and its recommendations, plus additional resources available from the AICPA and the FAF.
FEATURE ARTICLES
FAF
Rejects Independent Standard Setter for Private
Companies
November 2011
The AICPA has
expressed profound disappointment with a Financial Accounting
Foundation (FAF) proposal on private company accounting standard
setting and is urging CPAs and others to weigh in on the debate.
Standards
Overseer to Consider Proposal for Private Company Financial Reporting
February
2011
The Financial Accounting Foundation, FASB’s parent
organization, is expected to consider a report this month
recommending a new standard-setting board that would establish
exceptions and modifications to U.S. GAAP for private companies.
This article details some of the suggestions and includes a Q&A
with the chairman of the blue-ribbon panel that drafted the plan.
Panel
Poised to Recommend Separate Board, U.S. GAAP Exceptions for
Private Companies
December 2010
The
blue-ribbon panel on private company financial reporting is poised
to recommend that the Financial Accounting Foundation (FAF), FASB’s
parent organization, move to U.S. GAAP with exceptions for private
companies and that those standards should be set not by FASB but by
a separate board under FAF’s oversight.
Blue-Ribbon
Panel Narrows Field for Private Company Financial Reporting
September 2010
A
blue-ribbon panel tasked with providing recommendations on the
future of U.S. accounting standards for private companies by the end
of this year is focusing on models that are based on current U.S.
GAAP but that would result in different standards for private
companies, where warranted, compared with GAAP for public companies.
Minding
the GAAP
March
2010
Moss Adams CEO Rick Anderson discusses his new role as
head of a blue-ribbon panel on private company financial reporting.
NEWS
AICPA Turns Up
Volume on Call for Independent Board
Oct. 18,
2011
The AICPA governing Council approved a resolution to voice
its strong objections to a Financial Accounting Foundation (FAF)
proposal released Oct. 4 that rejected a blue-ribbon panel’s
recommendation for a separate board to set private company GAAP.
FAF Proposal Falls
Short of Independent Board for Private Company
Standards
Oct. 4, 2011
The Financial
Accounting Foundation, FASB’s parent organization, issued a proposal
that would create a Private Company Standards Improvement Council
(PCSIC) to determine whether exceptions or modifications to U.S.
GAAP are required to address the needs of users of private company
financial statements.
Working Group To
Develop Action Plan on Private Company
Reporting
March 4, 2011
The Financial
Accounting Foundation (FAF) announced that a working group will take
up the recommendations of the blue ribbon panel on standard setting
for private companies. The group intends to issue an action plan in
six to eight months on whether or how to devise separate financial
reporting standards for private companies.
Panel Moves
Forward With Recommendations for a Separate Private Company
Financial Reporting Board
Dec.
10, 2010
A
more detailed outline of what would be a blue-ribbon panel
recommendation for a new private company accounting
standard-setting board began to take shape. The new
standard-setting board could have between five and seven members
with private company financial reporting experience, an estimated
$4 million annual budget and face a sunset provision of five years
or less to evaluate the overall process, under a draft
plan.
Expediency at
Heart of Panel's Recommendations on Private Company Reporting
Oct.
18, 2010
Asked
why the panel on private company financial reporting appears to be
favoring a separate standards board making modifications to
existing U.S. GAAP (as compared to writing new standards) several
members of the panel pointed to a simple factor – time.
Panel Majority
Signals Support for Separate Board, U.S. GAAP Exceptions for
Private Companies
Oct. 8,
2010
The blue ribbon panel on private company financial
reporting is heading down a path to recommend that the Financial
Accounting Foundation, FASB’s parent organization, accept U.S.
GAAP with exceptions for private companies and that those
standards should be set not by FASB but by a separate board under
FAF’s oversight.
FASB Seeks Input
on Private Company Accounting Issues at Public Meetings
Sept.
13, 2010
FASB will hold two public round-table meetings to
discuss issues related to private company financial
reporting.
Panel Posts
Questions on Private Company Financial Reporting for Public
Comment
Aug. 5, 2010
A
blue-ribbon panel tasked with providing recommendations on the
future of U.S. accounting standards for private companies by the
end of this year is seeking public feedback on a series of
questions that will assist the panel in discussing how accounting
standards can best meet the needs of U.S. users of private company
financial statements and making recommendations thereon.
Blue-Ribbon
Panel Narrows Field for Private Company Financial Reporting
July
20, 2010
A blue-ribbon panel weighed in on seven alternative
models for private company financial reporting at its meeting,
eliminating models that were based on IFRS and a model that
effectively would have maintained the status quo.
Panel Expresses
“Broad-Based Concerns” for Private Company Financial Reporting
May
14, 2010
There are legitimate, broad-based concerns about
whether current U.S. GAAP and the underlying standard-setting
process are meeting the needs of private companies, and it is time
to start exploring alternatives that have surfaced in other
countries, the chairman of a blue ribbon panel told panel members.
Panel Meets to
Discuss Private Company Financial Reporting
April
12, 2010
Members of a blue-ribbon panel
established
to provide recommendations on the future of accounting standards
for private companies met for the first time to discuss their views on the topic, which has been
debated for decades.
Private Company
Financial Reporting Panelists Named
Feb.
28, 2010
The AICPA, the Financial Accounting Foundation (FAF)
and the National Association of State Boards of Accountancy
(NASBA) on Friday announced the members of the new blue-ribbon
panel on U.S. accounting standards for private companies.
Moss Adams CEO
to Head Blue-Ribbon Panel on Private Company Financial
Reporting
Jan.
11, 2010
Rick Anderson, CEO of Moss Adams LLP, on Monday was
named chairman of the blue-ribbon panel established to provide
recommendations on the future of accounting standards for private companies.
Panel to Address
Accounting Standards for Private Companies
Dec.
17, 2009
A new panel is poised to take on the issue of
whether separate accounting standards are needed for private companies.
VIDEO / AUDIO
Judith O'Dell: Separate Standards for Private Companies
July 2010
The JofA
interviewed Judy O’Dell, chairperson of FASB’s Private Company
Financial Reporting Committee about how separate standards could
help both preparers and users of private company financial
reports. O’Dell is a participating observer on a blue-ribbon panel
on standard setting for private companies.
ADDITIONAL RESOURCES
- The AICPA’s “Private GAAP” website, which includes videos of Institute and profession leaders explaining the blue-ribbon panel’s recommendations and potential benefits
- The Financial Accounting Foundation’s website on standard setting for private companies
- A list of panel members and participating observers
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