The FASB, along with the Private Company Council (PCC), has issued an Invitation to Comment: Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies, seeking stakeholder input on the proposed private company decision-making framework.
The framework is intended to serve as a guide for the FASB and the PCC in determining whether and in what circumstances to provide alternative recognition, measurement, disclosure, display, effective date, or transition guidance for private companies reporting under U.S. generally accepted accounting principles (GAAP).
In July 2012, the FASB issued a Discussion Paper which sought input from constituents for consideration by the FASB and the PCC in developing a decision-making framework for the financial statements of private companies. The FASB received 57 comment letters in response to that Discussion Paper.
As a result of stakeholder feedback, the FASB and the PCC have made changes to their original proposal. To help the FASB and the PCC identify additional improvement opportunities, stakeholders have been asked to provide input on the Invitation to Comment.
Comments on the proposed framework are due June 21, 2013.
The full text of the Invitation to Comment can be found by clicking here.
Readers should not act upon information presented without individual professional consultation.
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