The national body for certified public accountants (CPAs) has launched an initiative to study the effectiveness of financial reporting for constituents of privately-held businesses. A focal point of this effort will be to seek input from the lending community and other stakeholders of private company financial statements.
A task force of the American Institute of CPAs, which includes highly-respected and qualified representatives from various stakeholder groups, is driving the effort, which will include an information and awareness campaign as well as a market research component (scheduled to roll out early this summer).
We would encourage you to voice your individual opinion on this important topic. According to Dan Noll of the AICPA, the task force has approached its work with no pre-conceived notions as to whether there are problems with financial statements prepared in accordance with generally accepted accounting principles, a.k.a. GAAP. "We are embarking on a rigorous and healthy dialogue with the many constituents of private company financial statements to better understand their opinions about the relevance, usefulness and effectiveness of GAAP financials."
The AICPA task force has developed a discussion paper, which it hopes will serve as a catalyst for that dialogue.