Society Seeking Input on Blue-Ribbon Panel Recommendations

The NYSSCPA will host a panel discussion on July 11 during the Annual Leadership Conference, which will explore the recommendations of the Blue-Ribbon Panel on Standards Setting for Private Companies recommendation that a private company accounting standards board be formed to oversee a modified form of U.S. Generally Accepted Accounting Principles (GAAP) that would apply to nonpublic entities. The continuing professional education session is open to both members and non-members alike.

During the NYSSCPA panel discussion, attendees will have an opportunity to weigh in with their thoughts about the blue ribbon panel’s recommendations. NYSSCPA President Richard E. Piluso notes in his most recent column that the prospect of implementing a modified GAAP for private companies raises a number of questions, such as the extent of the difficulties currently faced by nonpublic entities working with current GAAP standards, whether modifications to suit these entities would have much impact, and whether a separate board is really necessary. The Society plans to take a position on this matter and so wants to have as many opinions as possible inform its decision. CPAs are therefore encouraged to attend the July 11 panel discussion, which will take place from 1:30–2:30 p.m. at the Turning Stone Resort in Verona, N.Y.

The panel’s final recommendations, highlighted in articles in both the Trusted Professional and the most recent issue of the CPA Journal, were released to the public at the beginning of the year. The panel recommended the formation of a new private company standards board that would work independently on proposed modifications and exceptions to U.S. GAAP for private companies, though some such modifications may be promulgated through standards set by the Financial Accounting Standards Board.

The blue-ribbon panel concluded that there are significant systemic issues in the way that nonpublic entities are required to use GAAP in their own accounting. Many standards, said the panel’s report, lack relevance to private companies, such as those pertaining to variable interest entities or uncertain tax positions.