Update on United States private company reporting

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14 Sep 2010

The FASB has issued a Media Advisory it will host two public roundtable meetings to discuss issues relating to existing accounting and reporting standards as they affect private companies.

The roundtables will be held on 10 October 2010 and 2 November 2010 and will include discussion on Consolidation (Codification Topic 810, originally issued as FASB Interpretation 46(R)) and Income Taxes (Codification Topic 740, originally issued as FASB Interpretation 48).

As noted in our earlier story, the United States AICPA/FAF/NASBA "Blue-Ribbon" Panel on Standard Setting for Private Companies is seeking input on the preparation of private company financial statements in the United States. Submissions close on 15 September 2010.

The Financial Accounting Foundation (FAF) has also released an 'In Focus' publication providing an update on the Blue-Ribbon Panel's activities, including the outcomes of recent meetings. The Blue-Ribbon Panel appears to prefer a 'home grown' alternative to the possible adoption of the IFRS for SMEs. The next meeting of the Panel is scheduled for 8 October 2010. Following is an extract from the 'In Focus' publication summarising the most recent Panel meeting:

...the panel began its discussion of alternative standard-setting models and structures. Most panelists preferred one of three models:

  • Keep current U.S. GAAP, but improve the system for considering potential differences for private companies
  • Reorganize U.S. GAAP into a "baseline" for all entities, with separate public company add-ons
  • Create a separate stand-alone private company GAAP based on current U.S. GAAP (similar to what Canada has done with Canadian GAAP).

Panel members also indicated that private companies should not be leading any charge to IFRS in the United States.

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