Small-Biz Reporting Framework Should Help Lenders 

Published July 14, 2013

Kathy Hoffelder of reports that a new financial reporting framework for privately held firms should help lenders just as much as the small businesses that are using it. Hoffelder tells readers that the AICPA’s Financial Reporting Framework for Small and Medium-Sized  Entities, issued last June, allows for parent-company-only financial statements and excludes the more complicated reporting of variable interest entities (in which a company owns less than a majority of an entity).

AICPA Director of Private Company Financial Reporting Bob Durak told that “excluding variable interest entities from the framework makes it easier for the filers as well as the bankers who need to see what exactly a company owns.” 

“A banker or financial statement user needs to know that the financial statements are reliable and the framework that the financial statements were prepared under is reliable,” he explains, noting that the AICPA subjected the framework to “rigorous scrutiny.”  


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