AICPA hereby supports the development of high quality GAAP for privately-held, for-profit entities based on concepts and accounting that are appropriate for the distinctly different needs of constituents of private company financial reporting, and
Council instructs AICPA management to work with the FAF and FASB to identify and implement a process to develop GAAP for privately-held entities, which would result in recognition, measurement, and disclosure differences, where appropriate, from current GAAP as applied by public companies.
The objective of this FASB project is to establish general standards of accounting for and reporting of events that occur subsequent to the balance sheet date
Existing requirements currently contained in the auditing literature- need to move to FASB
Project also considers whether certain minor differences between U.S. GAAP and the corresponding international financial reporting standard could be eliminated or minimized.
Subsequent Events- PCFRC Recommendation to FASB
PCFRC recommends that FASB require private companies to disclose in a policy note to the financial statements the cut-off date in which subsequent events were considered by management for purposes of subsequent events analysis and disclosure.
PCFRC recommends that the FASB stay the course on its current tentative decision not to converge with international accounting standards related to refinancing of short-term obligations and curing breaches of borrowing covenants.