Private Company Financial Reporting Overview
On May 23, 2012, the Financial Accounting Foundation announced its decision to make process and structural improvements in private company financial reporting by creating a new Private Company Council. The chairman and members of the PCC were named on September 19. December 6 marked the group's inaugural meeting. The AICPA and other stakeholders now eagerly await the appropriate substantive changes in GAAP the PCC is charged with producing to reflect the private company environment.
GAAP for Private Companies
- Variable-interest entities among first issues PCC identifies for discussion
- PCC Chairman favors holistic approach over differential standards for public, private companies for public, private companies
- FAF press release announcing members of Private Company Council
- Full report on FAF's plan for the new Private Company Council (released May 30)
- AICPA press release on FAF decision and Institute's development of OCBOA for small- and medium-sized entities
- FAQ on private company financial reporting and plans for an AICPA non-GAAP accounting option for smaller companies
- JournalofAccountancy.com article on changes from FAF's original proposal
- FAF's press release on creating the Private Company Council
The Blue Ribbon Panel delivered its report to FAF in late Jan. 2011. FAF conducted an outreach program and released a proposal on Oct. 4, 2011 with comments due Jan. 14, 2012. Roundtables were held Jan. through March 1, 2012 for additional input. FAF's decision to establish a Private Company Council was released May 23, 2012.
AICPA Expresses Support for FAF's Creation of Private Company Council; Announces Development of OCBOA for Small- and Medium-Sized Entities
AICPA President and CEO Barry Melancon, CPA, CGMA, gives an overview of the Financial Accounting Foundation's decision on process and structural changes through a new Private Company Council and discusses the AICPA's effort to develop an OCBOA financial reporting framework for privately held smaller entities.