March 15, 2012 10:35:39 am
Financial Accounting Standards Board (FASB) Chairman, Leslie Seidman, has announced that the Financial Accounting Foundation (FAF) final trustee vote on the structure and plan for private company financial reporting should be decided at their May meeting.
The vote will determine if the FAF will create a Private Company Standards Improvement Council (PCSIC) that would recommend deviations from U.S. GAAP for private companies. The decision has been hotly contested with FAF receiving more than 7,000 comment letters on the issue.
The American Institute of CPAs (AICPA) has opposed the formation of the council, recommending a board for private company standards board independent of FASB.
If FAF elects to create the private company standards council, Seidman said FASB will wait for council feedback before finalizing its own framework and definition.
For more on the announcement, please see the Journal of Accountancy.
Leave a comment: