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Private-Company GAAP: Can We Get a Do-Over?

Thursday, February 24, 2011

In the United States, generally accepted accounting principles (GAAP) are increasingly burdensome for private companies to apply. At the same time, private-company stakeholders find U.S. GAAP to be decreasingly relevant to their information needs.

A blue-ribbon panel recently proposed a solution to these problems. The upshot of the panel's solution is that GAAP for private U.S. companies should be defined by a standard-setting body other than the Financial Accounting Standards Board (FASB), which currently sets authoritative GAAP for all nongovernmental entities in the United States. Furthermore, the new body would define private-company standards by specifying extensive exceptions to FASB standards... Read More

Bruce Pounder – CFO.com