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The AICPA wrote another important chapter in the history of the search for simpler accounting practices when it issued an exposure draft of a proposed special-purpose framework in November 2012. But this won't likely be the final chapter, since some aspects of the framework have proven controversial. Although the comment letters expressed widespread support for the notion of simpler accounting practices for smaller companies, the details are likely to continue to evolve in response to the many concerns raised about the proposed approach. This approach calls for the AICPA to issue and maintain a non-authoritative, non-GAAP framework for use in special-purpose financial statements starting in late Spring 2013. The volume of questions raised and the tone of the views expressed clearly show this approach is considerably more controversial among accounting practitioners than initially expected.
This Messenger summarizes the basic approach and the reasons for the controversy.