A few more details are trickling in on the Private Company Council — that's the Financial Accounting Foundation's latest effort to improve the private company standard-setting process.
“While it is not exactly like what the (Blue-Ribbon Panel on Standard Setting for Private Companies) suggested, and while it is not exactly maybe how we would have designed the outcome, we look forward to outcomes from this process that actually deliver changes for private companies.”
Melancon added that “the AICPA recognizes and appreciates that FAF has taken solid steps in that direction,” and that “we all share the same goal — a more relevant and less complex financial reporting for private companies.”
He also touched on the AICPA's newly launched effort to develop an “other comprehensive basis of accounting” (OCBOA) financial reporting framework specifically for small and medium-size private companies. Here's what he said:
“This framework will be a less complicated and less costly alternative to U.S. GAAP for small and medium-size enterprises that do not need U.S. GAAP financial statements, but who want financial statements that are prepared in a consistent and reliable manner in accordance with a framework that has undergone public comment and professional scrutiny.”
Watch Melancon's statement in its entirety.
Next up is FAF CEO Terri Polley's take on the Private Company Council, courtesy of Accounting Today.
Finally, you'll want to check out the FAF Board of Trustees' final report on the creation of the PCC.