NYSSCPA Takes Issue with FAF's Private Companies Plan

Submitted by rkoreto on Mon, 12/19/2011 - 11:45

In a Dec. 12 letter to the Financial Accounting Foundation, NYSSCPA President Richard E. Piluso commented on the FAF's Oct. 2011 report, Plan to Establish the Private Company Standards Improvement Council, and criticized aspects of the foundation's approach.

Piluso noted that in Jan. 2011, the FAF's Blue-Ribbon Panel (BRP) "recommended the establishment of a separate standard-setting body to develop and establish GAAP for private companies. The BRP recommended that this separate standard-setting body work along with but not be subject to FASB governance. At that time, we agreed with the BRP’s recommendation as described in our attached letter."
 
However, said Piluso, in its Oct. report, the FAF "recommends the establishment of a Private Company Standards Improvement Council (PCSIC) that would identify standards that require modification for private companies subject to ratification by the FASB and, thereafter, be submitted to the public for comment."   
 
Continued Piluso: "The NYSSCPA does not support such a structure, and requests that the FAF adopt the BRP’s original recommendation of a separate standard-setting body. We submit that after 30 years of numerous advisory councils and studies, and, most recently, the recommendations of the BRP, your proposed recommendation would not result in a successful outcome for private companies."
 
The comment period runs until Jan. 14, 2012, after which the FAF plans to hold public roundtable meetings on the topic. As of today, the FAF has received more than 100 comment letters on this issue.
 
 

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