In her keynote address at an AICPA conference in Washington, DC last week, FASB Chairman Leslie Seidman focused on the current status of convergence efforts with the IASB, and provided the FASB and FAF's views on the SEC's upcoming decision on incorporation of IFRS into the U.S. financial reporting system, as well as the potential future role of FASB in that environment.
Seidman also addressed a significant portion of her remarks on FASB's current and planned efforts to improve private company accounting standards, and a related proposal of FASB's parent body, the FAF, to form a Private Company Improvements Standards Council (PCSIC) to focus on the needs of users of private company financial statements, and related improvements to standards to better meet those needs, such as through exceptions to GAAP for private companies. The FAF's proposal is a hot button issue, with the three organizational sponsors of a Blue Ribbon Panel on Standard-Setting for Private Companies - the FAF, the AICPA, and NASBA - split on the future direction that a standard-setting model should take; the AICPA supports the view of the Blue Ribbon Panel to form a separate, independent board (alongside FASB, with powers equal to FASB) to set accounting standards for private companies, while the FAF proposal, supported by NASBA, is to form a PCSIC to develop independent recommendations for private company accounting, under the umbrella of existing due process by publishing their recommendation for public comment and making those recommendations subject to ratification by the FASB, thereby maintaining one standard-setter per se, and one set of GAAP (with exceptions for private companies).
Panelists Invited for FAF Roundtables On Private Co Standard Setting
As part of its outreach efforts relating to its proposal to form the PCSIC, the FAF has slated several public roundtables on its proposal, and invites interested parties to be considered as panelists by filling out the online roundtable panelist application form. Roundtables are currently slated for January 18, 2012, in Atlanta, GA, January 26 in Dallas, TX and February 7 in Palo Alto, CA.
Related materials on the Private Co standard-setting front:
Read the FASB Chairman's speech at the 2012 AICPA Conference
Read the FAF's propsal on forming a Private Co Standards Improvement Council
. The comment deadline on this proposal is Jan. 14, 2012.
See our recent blog post, Y4K Care About FASB's Private Co Proposal?