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The AICPA’s proposed Financial Reporting Framework for Small and Medium-Sized Entities (FRF for SMEs) may result in the application of a more simplified set of accounting principles for certain entities. Architecture, engineering and construction (AEC) entities with relatively few financial statement users who also have ready access to management may be able to simplify their financial reporting requirements if the FRF for SME’s, as proposed, meets the requirements of the entity’s financial statement users.
One aspect of the FRF for SMEs is the elimination of industry specific guidance, which may result in significant diversity in practice. The current framework under US GAAP includes many areas of industry specific guidance applicable to the AEC industry, and as a result, application of the proposed FRF for SME’s could lead to significant changes in practice.
What you'll learn
During this course, AEC and accounting experts from Mayer Hoffman McCann will discuss:
The definition of a SME
The objective of the FRF for SMEs, including a comparison to US GAAP
Potential impact of FRF for SMEs on financial statements in the AEC industry