Please provide a one page critical evaluation and comment on the attached current event article. I will prefer dkhetan to answer question if possible.
Please provide a one page critical evaluation and comment on the attached current event article.
I will prefer dkhetan to answer question if possible.
FASB Previews Framework for Deciding on Accounting Standards Changes for Private
According to an article in the “Accounting Today” on April 15, 2013, the Financial Accounting
Standard Board (FASB) and the Private Company Council (PCC) are determining whether to
have a set of guidelines that will provide “alternative recognition, measurement, disclosure,
display effective date or transition guidance for private companies” reporting under U.S. GAAP.
Most private companies are not recognizing deferred income taxes, not accruing employee
benefit costs, and not consolidating variable-interest entities due to the complexity and cost in
preparing financial statements.
Therefore both FASB and PCC proposed that private companies should be allowed to select the
alternative guidelines within U.S. GAAP that are deem appropriate for recognition and
measurement guidance, rather than applying all the alternatives within GAAP. However, the
proposed guide will continue to provide the financial information that will benefit financial users
such as investors and lenders to make financial decisions.
The guide will help identify the unique needs of the private company industry as well as reduce
the complexity and cost of preparing financial statements under current U.S. GAAP guidelines.