Private Co Standard Setting: FAF Expects To Issue Conclusions This Fall
A mid-year update recentlly posted by the Financial Accounting Foundation - overseer of FASB and GASB - concerning the FAF's consideration of a recommendation made by a Blue Ribbon Panel that a separate board be formed under the FAF to focus on private company standard-setting - notes that further outreach to preparers, users of private company financial statements and others will continue to take place, under the continued leadership of a Working Group of the FAF Trustees focusing on this issue.
Regarding timing of the announcement of the FAF's conclusions, following the completion of the outreach process, the FAF's mid-year update states, "It is anticipated that the Trustees will share their findings and conclusions in the fall."
Over 1,100 comment letters
In addition to in-person meetings being conducted by the FAF Trustees, and outreach being conducted by FASB board and staff members, regarding potential improvements to standard-setting for private companies, the FAF has thus far received over 1,100 comment letters on this subject. A very quick scan of the comment letter file reveals at least three types of positions: those that favor the Blue Ribbon Panel recommendation to form a separate standards-board for private company accounting, those that are not in favor of that recommendation, and those that advocate for a third path, to create a mechanism such as an advisory board, to assist in the development of private company accounting standards.
FASB Staff Outlines Key Differences Between Needs of Users of Private, Public Co Reporting
Concurrent with release of the FAF Mid-Year Update on its consideration of private co standard setting, FASB separately published preliminary staff findings in a "FASB in Focus: Private Companies: The Path to a Differential Standard-Setting Framework"
Additional details regarding the FAF's consideration of private company standard setting, including further details on comment letters filed, can be found here.