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FASB clarifies public business entity

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Oct 30, 2013

The FASB met today to discuss feedback received on proposed Accounting Standards Update (ASU), “Definition of a Public Business Entity: An Amendment to the Master Glossary.” The Board agreed on additional refinements and clarifications to the proposed definition of a public business entity.

In addition, the Board decided to (1) grant permission to an entity that does not meet any of the criteria in the definition of a public business entity to use financial reporting alternatives within U.S. GAAP, (2) provide examples of “publicly available” in criterion (e), (3) move discussions about whether to amend existing definitions of a nonpublic entity and a public entity within the Codification to a later date, and (4) establish an effective date of the final definition of a public business entity to be concurrent with the first final ASU that uses the definition.

The Board has directed the staff to begin drafting a final ASU for a written ballot vote.

For more information, please see:

  • Deloitte's October 31, 2013, Accounting Journal Entry: FASB redeliberates the proposed definition of a public business entity.
  • The FASB's minutes on definition of a nonpublic entity.

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