A blue-ribbon panel set up to examine accounting standards for private companies last week recommended modifying U.S. generally accepted accounting standards (GAAP) to meet the needs of smaller businesses and establishing a separate standards-setting body to oversee the changes, rather than assigning the task to the Financial Accounting Standards Board.
The Financial Accounting Foundation, FASB's parent and one of the sponsors of the blue-ribbon panel, will now consider whether to enact the proposals.
“It's not a fait accompli,” says Terry Warfield, the Beyer professor of accounting at Wisconsin School of Business. “The FAF has already done some things at the FASB to respond to the needs of some of the people who think we need a private company GAAP. I think we have to wait and see whether the procedures that changed at FASB recently will be effective in meeting those needs.”
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Susan Kelly
Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.
