AICPA News Update - May 23, 2012 

Special Issue: AICPA Supports FAF Decision to Make Process and Structural Improvements; Announces New OCBOA for SMEs 
Published May 23, 2012

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  AICPA
AICPA News Update
A Weekly Email Newsletter on Issues & Events Surrounding the CPA Profession
 
 
 
  In This Update: May 23, 2012 - Volume 15 No. 21  
 
AICPA Supports Financial Accounting Foundation’s Decision to Make Process and Structural Improvements by Creating Private Company Council

AICPA Developing OCBOA Financial Reporting Framework for Smaller Businesses
       
 
AICPA Supports Financial Accounting Foundation’s Decision to Make Process and Structural Improvements by Creating Private Company Council

AICPA Developing OCBOA Financial Reporting Framework for Smaller Businesses
  The Financial Accounting Foundation today announced its decision to make process and structural improvements by creating the Private Company Council. The Private Company Council is based upon the body proposed last October by FAF to set differences in U.S. GAAP, where appropriate, for privately held companies. The AICPA supports FAF’s creation of the new Council.

After receiving recommendations from the Blue Ribbon Panel on Standard Setting for Private Companies in January 2011, FAF gathered input from stakeholders and released a proposal last fall. The vast majority of the more than 10,000 letters received from stakeholders agreed with the panel that action must be taken now to make private company financial statements more relevant, less complex and cost-beneficial. The panel was formed by the AICPA, FAF and the National Association of State Boards of Accountancy. The AICPA and the state CPA societies thank our collective members who submitted comment letters and encouraged clients, employers, lenders and others to do so.

Also today, the AICPA announced plans to develop an “other comprehensive basis of accounting” financial reporting framework to meet the needs of both privately held small- and medium-sized enterprises and the users of their financial statements. The SME OCBOA framework will be a less complicated and a less costly alternative system of accounting to U.S. GAAP for SMEs that do not need U.S. GAAP financial statements. More information will be provided this summer.

AICPA President and CEO Barry C. Melancon, CPA, CGMA, summarizes these developments in a video. The AICPA issued a press release responding to FAF’s decision and announcing the effort to develop the new form of OCBOA, which FAF supports.
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