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October 24, 2011 2:14:47 pm

AICPA Pressures for Independent Board for Private Companies

The American Institute of CPAs (AICPA) issued a resolution on October 18th to express its concerns with the Financial Accounting Foundation (FAF) proposal that rejected calls for an independent accounting board for private companies. 
 

The resolution instructs the AICPA’s Board of Directors to submit a comment letter to the FAF which

  • Outlines the AICPA’s disagreement with the proposal and restates AICPA’s support for the recommendations made by a Blue Ribbon Panel, and
  • Directs the AICPA Board of Directors to “consider all options, including consideration of other established independent standard-setting bodies as the standard setter for U.S. GAAP for private companies, the creation of a committee or board within the AICPA or a standard setting board as a separate entity, to develop private company generally accepting accounting principles (PCGAAP) or a comprehensive private-company-specific basis of accounting that would deliver meaningful, lasting improvement to private company financial reporting consistent with the Blue Ribbon Panel recommendations.”


The FAF has proposed a new Private Company Standards Improvement Council to incorporate private company concerns into the existing GAAP. 


For more on the private company debate, please see the Journal of Accountancy.  To discuss this or other private company accounting issues, please contact Kimberly Peňa. For more information on REDW’s audit and consulting services, please click here.
 


Tags: Accounting Standards, Audit


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