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August 02, 2012 1:13:29 pm

FASB Proposes Private Company Framework

The Financial Accounting Standards Board has released for comment its staff recommendations for a framework of reporting requirements for private companies.  

The paper, Private Company Decision-Making Framework: A Framework for Evaluating Financial Accounting and Reporting Guidance for Private Companies, will guide the recently created Private Company Council (PCC) as it reviews and, if needed, modifies existing U.S. GAAP for private companies.

The proposed paper would require the FASB and the PCC to determine if any proposed modifications or exclusions to U.S. GAAP provide relevant information to private company statement users at a reasonable cost, as well as establishing a cost/benefit analysis guide and flowchart for this determination.  

The PCC and the FASB must jointly agree on the proposed framework before it can be implemented.  Comments may be submitted through October 31, 2012.

For a more detailed report on the proposed framework, including a summary of additional staff recommendations, please see the Journal of Accountancy.  To learn more about REDW’s audit and consulting services, please contact Steve Cogan or Chris Tyhurst.
 


Tags: Private Companies, Accounting Standards


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