FASB Issues Invitation to Comment
On July 31, 2012, the Financial Accounting Standards Board (FASB) issued an Invitation to Comment on a staff paper that outlines an approach for deciding whether and when to modify US Generally Accepted Accounting Principles (GAAP) for private companies. The paper, Private Company Decision-Making Framework: A Framework for Evaluating Financial Accounting and Reporting Guidance for Private Companies, contains initial FASB staff recommendations for criteria to determine whether and in what circumstances it is appropriate to adjust financial reporting requirements for private companies following US GAAP. Stakeholders are asked to provide input on the document by October 31, 2012.
Statement from FASB Chair
The development of a sound decision-making framework is essential to our ongoing efforts to address the unique needs of private company stakeholders while maintaining the high quality of US GAAP.
We anticipate that the guidance designed to identify cost-effective alternatives for private companies also will benefit some of the FASB's public and not-for-profit standard-setting activities.
– FASB Chairman, Leslie F. Seidman
- Types and number of financial statement users
- Access to management
- Investment strategies
- Ownership and capital structures
- Accounting resources
- Learning about new financial reporting guidance
- Recognition and measurement
- Display (presentation)
- Effective dates
- Transition methods
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.