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How Not to Create Private-Company GAAP

Thursday, January 6, 2011

Dissatisfaction with generally accepted accounting principles is increasing among stakeholders of private U.S. companies. A blue-ribbon panel has tentatively concluded that a new standard-setting body should create a distinct GAAP for private U.S. companies by specifying extensive exceptions to GAAP as set by the Financial Accounting Standards Board. Unfortunately, due to the panel's lack of risk awareness, establishing a "little GAAP" for general-purpose financial reporting is unlikely to solve the problems of key stakeholders... Read More

Bruce Pounder –