Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

AICPA is not amused with ‘little gaap’ body being a subsidiary of FASB

with 2 comments

(title of post changed from AICPA is not abused to AICPA is not amused.  Sorry!)

I mentioned earlier that the FAF, parent of FASB, wants to set up a group that would carve out portions of GAAP that did not apply to private companies. Problem with this deal is that all changes would have to be approved by FASB.  That means PCSIC would be a subsidiary or subcommittee of FASB.

The AICPA is not amused.

Bill Sheridan, from CPASuccess, points out in his post AICPA draws a line in a private company sand that the AICPA has put a threat on the table: create a body that is a separate board or the AICPA will develop its own standard creating body.

Now that would be cool! It would mean learning a new body of knowledge, but with the radical rate of change that we are all going to have to get used now and into the indefinite future, so what? It would be worth it.

Here’s the key quote from the AICPA

“Either FAF moves to adopt the Blue Ribbon Panel on Standard Setting for Private Companies’ recommendations for a separate board — which is the AICPA’s preference — or the AICPA will consider other options

Comment period on the FAF proposal is open through January 14, 2012.  Might be worth your time to write a comment.

Update:

Further discussion at the AICPA web site here.

Key paragraph from the resolution of the AICPA council:

The resolution further instructs that “if the [FAF] proposal is not modified to include such a board … this Council directs the AICPA Board of Directors to consider all options, including consideration of other established independent standard-setting bodies as the standard setter for U.S. GAAP for private companies, the creation of a committee or board within the AICPA or a standard-setting body as a separate entity, to develop private company generally accepted accounting principles (PCGAAP) or a comprehensive private company-specific basis of accounting that would deliver meaningful, lasting improvement to private company financial reporting consistent with the Blue Ribbon Panel recommendations.”

Written by Jim Ulvog

October 19, 2011, 5:56 am at 5:56 am

Posted in Accounting

2 Responses

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  1. […] smart enough to know there is a fight.  See my post here for discussion of AICPA announcing they will set up a new standard-setting body if FAF goes forward […]

  2. […] mentioned this here and […]


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