FASB invites comments on its private company framework

BVWireIssue #119-2
August 8, 2012

Last week the Financial Accounting Standards Board (FASB) released an Invitation to Comment (ITC) on its proposal Private Company Decision-Making Framework: A Framework for Evaluating Financial Accounting and Reporting Guidance for Private Companies.

In particular, the ITC is seeking stakeholder input on the board’s staff paper, which “outlines an approach for deciding whether and when to modify U.S. generally accepted accounting principles (GAAP) for private companies,” according to the latest FASB release. “The paper contains initial FASB staff recommendations for criteria to determine whether and in what circumstances it is appropriate to adjust financial reporting requirements for private companies following U.S. GAAP.” For a related summary, see the FASB’s In Focus. The ITC requests comments by Oct. 25, 2012.

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