The VSCPA Board of Directors has adopted a resolution supporting the recommendations of the Blue Ribbon Panel on Private Company Financial Reporting.
The Blue Ribbon Panel recently recommended the creation of a separate board to determine private company accounting standards. The board, which would be overseen by the Financial Accounting Foundation (FAF), would focus on exceptions and modifications to U.S. Generally Accepted Accounting Principles (GAAP) rather than a separate set of GAAP for private companies.
In its January meeting, the panel concluded that “there are urgent and growing systemic issues that need to be addressed in the current system of U.S. accounting standard setting,” according to its report.
The new board, if created, would work closely with the Financial Accounting Standards Board (FASB) to create an efficient standard-setting process and would have final authority over exceptions and modifications. A comprehensive review would be conducted after three to five years to evaluate the board’s effectiveness.
That plan is currently under review from constituents.