Big GAAP versus Little GAAP

By: Dennis Gardiner, Partner email

The Financial Accounting Foundation, FASB’s parent organization, was recently presented a report which recommends changes to the future of accounting standard setting for private companies, including a separate standard-setting board. It is believed that exceptions and modifications to GAAP for private companies is a better response to the needs for the private company sector. Under the recommendations, a separate private company standards board would be established to make exceptions and modifications for both new and existing standards. FASB will also need to define what differentiates private companies from public companies. We will keep you posted as we learn more.