FASB Tentatively Defines Nonpublic Entity
At its board meeting last week, the Financial Accounting Standards Board reached a decision on the definition of a nonpublic entity. This is part of a project that will result in a proposal released for public comment; all FASB decisions are "tentative" until final standards (i.e., Accounting Standards Updates or amendments to FASB's Accounting Standards Codification) are issued.
The definition of nonpublic entity decided by FASB last week is as follows:
The Board decided that an entity that is required to file or furnish financial statements with the SEC for purposes of issuing securities to be traded in a public market should not be included in the definition of a private company. The Board also decided that a privately held financial institution should be included in the definition of a private company.
Further Discussion at Today's (May 2) FASB Board Meeting re: Conduits
According to FASB's calendar, discussion of the definition of nonpublic entity was slated for further discussion at today's (May 2) FASB board meeting, specifically on the question of:
Whether a for-profit entity that is a conduit bond obligor for conduit debt securities should be included in the definition of a nonpublic entity.
Additional information on FASB's project to define a nonpublic entity can be found in FASB's project summary.
Other Matters Recently Discussed by FASB
Other matters slated for discussion at today's (May 2) FASB board meeting include FASB's project on Disclosures About Risks and Uncertainties and the Liquidation Basis of Accounting. Watch for FASB's Summary of Board Decisions on today's meeting in FASB's News Center.
Additional matters discussed at last week's FASB board meeting included the Disclosure Framework, Consolidation, and Nonpublic Entity Fair Value Measurement Disclosures. See FASB's Summary of Board Decisions