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AICPA Notifies Financial Accounting Foundation re: Private Companies

November 23, 2011, 07:00 AM
Filed Under: Regulatory News

According to an article posted on AccountingWeb, the American Institute of Certified Public Accountants' (AICPA) governing council overwhelmingly approved a resolution that sends a strong message to the Financial Accounting Foundation (FAF): Either the FAF moves to adopt the Blue Ribbon Panel on Standard Setting for Private Companies' recommendations for a separate board, or the AICPA will consider other options.

The AccountingWeb article states the other options the AICPA may consider include creating a separate standard setting body 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 panel's recommendations.

In early October 2011, the FAF rejected the recommendation, despite receiving over 3,000 letters from private company constituents and more than thirty states CPA societies in support of the panel's recommendation.

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