Private Company Financial Reporting Key Messages
- The AICPA has established a Private Company Financial Reporting Task Force which is initiating a healthy and rigorous dialogue with all constituents of private company financial reporting.
- The task force’s mission is to determine whether or not general purpose financial statements of private, for-profit entities, prepared in accordance with generally accepted accounting principles (GAAP), meet the needs of all constituents of that reporting.
- This is a topic of great interest and concern to many CPAs in the post Sarbanes-Oxley environment, particularly since the majority of our members work in the private company environment.
- The task force has begun an unprecedented grass roots effort to speak with all constituents of private company financial reporting, with a particularly strong focus on the external users of that reporting.
- This process will be a very open and objective effort with no pre-conceived notions as to the final outcome. In fact, the strategy for the task force is to first determine if traditional GAAP financial statements of private companies meet the need of constituents.
- If, at the conclusion of this dialogue, it is determined that constituents’ needs are not met, it will be the task force’s purpose to define the issues and propose solutions on behalf of the CPA profession.