BY KEN TYSIAC
JANUARY 12, 2012
A comment period on private company financial statements that already has produced more than 6,500 letters has left the Financial Accounting Foundation (FAF) trustees with a lot to consider, FAF President and CEO Terri Polley said Thursday.
Speaking at a North Carolina Association of CPAs meeting that was simulcast on the Web, Polley said the input has been helpful. The deadline is Saturday for comment letters on a FAF proposal that has been strongly contested by the AICPA because it would continue to give FASB the final decision on any modifications to U.S. GAAP for private companies.
FAF’s Oct. 4 proposal called for the creation of a Private Company Standards Improvement Council (PCSIC) to recommend changes to U.S. GAAP for private companies. Those recommendations would be subject to FASB approval.
Polley said the FAF trustees believe it’s important to have a single GAAP and keep standard setting under one organization. The AICPA believes an independent board under FAF’s supervision is the best mechanism for accommodating the needs of private companies that struggle with certain complexities and costs of U.S. GAAP that many deem unnecessary for nonpublic entities.
“I would definitely envision that there will be some changes from what the trustees have proposed,” Polley said in an interview after Thursday’s speech. “How substantive they will be, that remains to be seen, and (the trustees) are the ones that are going to have to make that decision.” - see the rest of this article in the Journal of Accountancy
Speaking at a North Carolina Association of CPAs meeting that was simulcast on the Web, Polley said the input has been helpful. The deadline is Saturday for comment letters on a FAF proposal that has been strongly contested by the AICPA because it would continue to give FASB the final decision on any modifications to U.S. GAAP for private companies.
FAF’s Oct. 4 proposal called for the creation of a Private Company Standards Improvement Council (PCSIC) to recommend changes to U.S. GAAP for private companies. Those recommendations would be subject to FASB approval.
Polley said the FAF trustees believe it’s important to have a single GAAP and keep standard setting under one organization. The AICPA believes an independent board under FAF’s supervision is the best mechanism for accommodating the needs of private companies that struggle with certain complexities and costs of U.S. GAAP that many deem unnecessary for nonpublic entities.
“I would definitely envision that there will be some changes from what the trustees have proposed,” Polley said in an interview after Thursday’s speech. “How substantive they will be, that remains to be seen, and (the trustees) are the ones that are going to have to make that decision.” - see the rest of this article in the Journal of Accountancy
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