AICPA URGES U.S. TO CREATE NEW STANDARD SETTER FOR PRIVATE COMPANY FINANCIAL REPORTING

Although largely driven by issues affecting about 15,000 domestic listed companies, U.S. GAAP affects far more private companies, which are key to the strength of the U.S. economy. For decades, many of these companies and their financial statement users have reported that too much of GAAP is losing relevance for them while becoming increasingly complex. More and more private companies are taking GAAP exceptions in their financial statements as a result. On 4 October, the U.S. Financial Accounting Foundation (FAF), which oversees the Financial Accounting Standards Board (FASB), released for public comment a proposal on private company financial reporting. The proposal, Plan to Establish the Private Company Standards Improvement Council (PCSIC), was … Continue reading →