A blue ribbon panel on private company financial reporting, expected to make its final recommendations before the end of the year, does not believe the current approach for setting generally accepted accounting principles (GAAP) related to private companies is meeting user needs in a cost-effective matter. The panel also has rejected any near-term future model based solely on International Financial Reporting Standards (IFRS).
The panel was formed earlier this year by the AICPA, the Financial Accounting Foundation (FAF) which oversees the Financial Accounting Standards Board (FASB), and the National Association of State Boards of Accountancy (NASBA) to explore the future of standard setting for private companies.
Three financial reporting models are being considered by the panel and would result in appropriate differences in GAAP for private companies. The panel will be deciding whether to recommend either: (1) U.S. GAAP with exclusions and enhancements for private companies, (2) a basic U.S. GAAP with public company add-ons, or (3) separate, stand-alone standards for private companies based on current U.S. GAAP.
The panel also is exploring whether to recommend a board separate from the FASB to oversee private company standards.
Input on how accounting standards can best meet the needs of users of private company financial statements may be given by visiting www.fasb.org, and the public comment period ends Wednesday, September 15, 2010.
Source: http://www.aicpa.org/News/FeaturedNews/Pages/BlueRibbonPanelUpdate.aspx
No comments:
Post a Comment