Private-Company Accounting Standards Podcast: Panel Calls for Changes

The blue-ribbon panel (BRP) has issued its report to the trustees of the Financial Accounting Foundation (FAF) on how accounting standards can best meet the needs of users of U.S. private-company financial statements. The panel supports a model based on U.S. generally accepted accounting principles (U.S. GAAP) with exceptions and modifications for private companies. Major recommendations include creating a new standard-setting board to establish accounting standards for private companies and developing a separate conceptual framework to support the identification of appropriate, justifiable exceptions and modifications to U.S. GAAP.