A new 23-page Technical Question & Answer (TQA) document issued Tuesday by the AICPA will help preparers and practitioners determine if their client is a public business entity under the updated U.S. GAAP definition.
FASB updated the definition of a public business entity in 2013 to minimize inconsistencies in GAAP and reduce diversity in practice.
The TQA issued Tuesday was developed to assist those seeking clarity in their public business entity status. The document covers a broad range of industries, and also contains detailed discussion specific to entities such as depository institutions, broker-dealers, insurance companies, and not-for-profits.
“The importance of organizations getting this right in such a dynamic atmosphere is key,” Jason T. Brodmerkel, CPA, AICPA staff leader of the Depository Institutions Expert Panel. “Our efforts have included working hand in hand with many experts with a goal of helping professionals avoid costly implementation issues that could arise if entities misinterpret PBE status.”
—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.