The American Institute of Charted Public
Accountants (AICPA) has expressed disappointment at the Financial
Accounting Foundation’s (FAF) failure to create an independent
standard setting board for private company financial reporting.
AICPA president and chief executive Barry
Melancon and AICPA chair Paul Stahlin said the creation of an
independent board to set differences in US GAAP standards for
privately held companies was the cornerstone of the Blue Ribbon
Panel on Standard Setting for Private Companies’ report.
“FAF’s proposal has failed to accept the
views of the many voices of the private company constituency asking
for a separate board. We don’t think the concerns of smaller
private companies can be fully appreciated until there is an
independent board dedicated and focused solely on the needs of
private companies,” Stahlin said.
AICPA said the blue ribbon report received
more than 3,000 letters with 99 percent support for its
recommendations.
“Over the years, FASB’s main focus has
understandably been on the needs of constituents of publicly traded
companies. The pent up frustration we are witnessing by
the private company constituency is a direct result of that
public company focus and not seeing that differences can be and are
appropriate for private companies and their financial statement
users,” Melcancon said.
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