AICPA Releases New Financial Reporting Framework for Small- and Medium-Sized Entities
The AICPA’s new financial reporting framework designed for America’s small business community is now available and ready to use. The FRF for SMEs™ accounting framework delivers financial statements that provide useful, relevant information to owners of private companies and other stakeholders in a consistent, simplified, cost-effective way. In this video, Chairman of the AICPA Board of Directors Richard J. Caturano, CPA, CGMA, and AICPA President and CEO Barry C. Melancon, CPA, CGMA, explain the marketplace demand for the FRF for SMEs™ framework, the opportunity it presents for CPA firms’ clients and CPAs in business and industry, and the important features that address the concerns of owner-managed, for-profit smaller enterprises.
The FRF for SMEs™ framework gives small-business owners and users of their financial statements, such as banks and insurers, robust yet relevant financial information to make informed business or credit decisions. It also allows some optionality, so financial statements can be tailored to users’ needs. A principles-based framework, the FRF for SMEs™ accounting option enables CPAs to exercise their professional judgment, knowledge, and skill, reinforcing their role as trusted business advisers.
Other special purpose frameworks, such as income tax or cash bases of accounting, remain and could be appropriate. Main Street businesses and users of their financial information looking for more comprehensive and consistent financial statements may want to explore the FRF for SMEs™ accounting option.
As the framework is not authoritative or required, it may be used immediately. Download a FREE copy of the framework to see whether it is the best financial reporting option for you or clients who do not need GAAP-based financial statements.
ASEC Whitepaper Released: The Economics of Sustainability Initiatives
Given the increasing trend in assurance of sustainability-related information, the AICPA Assurance Services Executive Committee (ASEC) convened the Sustainability Assurance and Advisory Task Force, which has released its most recent whitepaper, The Economics of Sustainability Initiatives.
The purpose of the whitepaper is to communicate an imperative to move from a sustainability strategy (that is, discreet initiatives and tactics) to a sustainable strategy (that is, a coherent plan to balance long term viability—for the benefit of both shareholders and society—with demands for short term competitiveness and profitability).
The whitepaper, as well as information on four upcoming webcasts in the sustainability area, is available on the task force’s webpage.
Release of the New Accounting and Valuation Guide Valuation of Privately-Held-Company Equity Securities Issued as Compensation and Related Webcast
Since the issuance of FASB ASC 718 (formerly FASB Statement No. 123R) in 2004, valuing stock-based compensation ("cheap stock") has been a significant challenge for private companies. The final version of the revised AICPA Accounting and Valuation Guide Valuation of Privately-Held-Company Equity Securities Issued as Compensation is now available. It is the culmination of four years of effort, updating the original 2004 publication by the same name to reflect best practices developed during the previous decade. Coinciding with the release, join us for a webcast on June 25 (1–3 p.m. ET), during which representatives from the task force that updated this guide will discuss the key topics covered in the revised guide, including the following:
Register for this webcast today to learn more about the new AICPA Accounting and Valuation Guide. Remember, FVS section members and ABV and CFF credential holders receive a $20 discount.
- Chapter that provides a framework for evaluating private and secondary market transactions
- Chapter that discusses adjustments for control and marketability
- New discussion on highly leveraged entities
- New discussion on the relevance of FASB ASC 820 (FASB Statement No. 157) to cheap stock issues