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Private-Company GAAP: Setting the Right Goal

Friday, December 10, 2010

Stakeholders of private U.S. companies are increasingly dissatisfied with generally accepted accounting principles as set by the Financial Accounting Standards Board. Dissatisfaction with GAAP, coupled with the freedom to ignore it, has led private companies to report financial information in diverse ways. Such diversity has resulted in varying reliability and limited comparability of reported information. At the same time, private companies that adhere to GAAP at the insistence of their stakeholders find themselves bearing increasing costs and complexities. If unsolved, these problems pose significant risks to the competitiveness and overall health of a major sector of the U.S. economy... Read More

Bruce Pounder –