A US institute has called for the Financial
Accounting Foundation (FAF) to listen to blue ribbon panel
constituents’ demand for different standards for private
American Institute of Certified Public
Accountants (AICPA) said nearly 2,500 letters have been sent to the
FAF from the privately held company constituency of which 99% of
them demanded differential standards were created.
“We’ve studied this problem for far too long.
Over the years, some changes have been made. But the blue ribbon
panel reported that they were insufficient,” AICPA president and
chief executive Barry Melancon said.
“Now is the time for the FAF to take the bold
step of creating a separate board to set relevant standards that
privately held companies sorely need,” Melancon stressed.
The blue ribbon panel on private company
financial reporting was created in 2009 by AICPA, FAF and the National Association of
State Boards of Accountancy to investigate how accounting standards
can best meet the needs of users of private company financial
statements. Its members include cross-section of financial
reporting constituencies, lenders, investors and owners as well as
preparers, auditors and regulators.