Thoughts: Blue-Ribbon Panel Narrows Field for Proviate Company Financial Reporting
The Journal of Accountancy published an interesting article today called Blue-Ribbon Panel Narrows Field for Private Company Financial Reporting. As you may be aware, there has been discussion in this area for a long time.
I read this with interest and had the following thoughts:
- At the heart of the matter, this deals with big company versus little company GAAP. While our Firm does a lot of SEC audits, we do private company audits, reviews and compilations. Every year it is harder and harder for the private sector to comply.
- The SEC keeps pushing towards some kind of convergence with IFRS, but this panel eliminated any IFRS models. That they also eliminated the "status quo" isn't surprising.
- The panel is leaning to a different model of GAAP.
If implemented, my take is that we would wind up with public company GAAP and private company GAAP. I have long expected that to happen, but fundamentally it just doesn't seem right. Long run it likely means higher costs as well, and nobody wins in that scenario.
Joel M. Ungar, CPA is a lifelong resident of the Detroit area and a graduate of The University of Michigan. He is a principal with Silberstein Ungar, PLLC, a Top 15 auditor of SEC public reporting companies. Joel writes observations on different matters and especially on working with and using LinkedIn. He thinks he has a sense of humor.