Alloy Alert - Private Company Financial Reporting
It’s “Now or Never” for Private Companies
In 2009, the American Institute of Certified Public Accountants (AICPA), the Financial Accounting Foundation (FAF), and the National Association of State Boards of Accountancy established a “blue-ribbon” panel (Panel) to analyze the appropriateness of existing accounting standards for users of U.S. private company financial statements. Their findings were not surprising to most private companies and CPAs alike. In its current form, U.S. generally accepted accounting principles (GAAP) are overly complex and costly for private company use. The Panel agreed that change is urgently necessary.
This is the opportunity for private companies, CPAs, and bankers to speak their minds. The FAF wants to hear from small businesses and their financial statement users to determine what changes require consideration as it reforms GAAP for private company use. The time to act is “now or never.”
If you would like to compose a letter to the FAF in response, the AICPA has online tools to help https://apps.aicpa.org/pcfr/. If you would like additional information or want to discuss how this directive may affect your business, please give us a call.
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