In a comment letter filed with the Financial Accounting Foundation last week, FEI’s Committee on Private Company Standards called for the formation of a Private Company Task Force (PCTF) – modeled after FASB’s Emerging Issues Task Force (EITF) – which would “have the ability to propose changes [to accounting standards] which are approved, adjusted or denied by the FASB.”
The letter, signed by CPC-S Chairman George Beckwith, continued:
The new group’s [e.g., PCTF] opinions and proposals would have to be taken seriously. If over time, the majority of its proposals are denied or not acted upon, the group will not have achieved its objectives and its structure would have to be re-evaluated. However, if over time the new group’s proposals were seriously considered and private company constituents were provided some relief from standards they feel add cost without enhancing relevant information, the group will have achieved its goal and the new group would be part of the FASB process.
CPC-S’ letter was sent in response to the FAF’s request for input as it considers the recommendations of the Blue Ribbon Panel (BRP) on Standard Setting for Private Companies and other possible actions relating to improving the FASB’s responsiveness to the needs of private companies and the users of their financial statements.
Read additional highlights of the CPC-S recommendations to the FAF here.