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FAF Working Group to Study Private
Company and Not For Profit Reporting |
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Dear Financial Leader,
I want to update you on the most recent action about the move toward historic change in private company financial reporting. The Financial Accounting Foundation (FAF) has completed its review of the final report of the Blue Ribbon Panel on Private Company Financial Reporting (panel) and announced on March 4, that it was forming a Trustee Working Group to address accounting standard setting for nonpublic entities.
The working group intends to issue an action plan in six to eight months. While we expected FAF to take such a step as it prepares proposals for public comment, we note that FAF now is including nonprofit entities in the scope of this effort. The panel specifically excluded nonprofits.
This development adds complexity to the issue. To make sure our ultimate goal is achieved, it is more critical than ever for CPAs, private company employers and private company financial statement users to support differential standards and a separate standard-setting board. The AICPA responded to the FAF announcement, urging the group to move “briskly” and to adopt the panel’s recommendations.
Learn More
To help communicate the importance of this critical issue and the process to transform the Panel’s recommendations into reality, the AICPA has created a dedicated online resource at www.aicpa.org/privateGAAP.
We will continue to keep you informed. Meanwhile, you and other interested parties can read the panel’s report from the AICPA’s online resource.
The AICPA works diligently to advocate on behalf of our profession and we will continue to keep you informed through email, articles and our BusIndNews newsletter. You also can find out more about this and other important information affecting our profession in the Journal of Accountancy, AICPA News Update, BusIndNews and CPA Letter Daily.
Sincerely,
Carol Scott, CPA, MBA
Vice President - Business, Industry & Government
American Institute of Certified Public Accountants
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