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advocacy community education
O
n January 19, the CSCPA hosted a
meeting with Teresa Polley, president
and chief executive officer of the
Financial Accounting Foundation (FAF),
Lawrence Smith, member of the Financial
Accounting Standards Board (FASB),
and CSCPA members representing the
Accounting and Reporting Standards,
Financial
Institutions,
Not-For-Profit
Organizations, and Peer Review Committees.
Recently, FAF Chairman Jack Brennan
hosted a listening tour. The consistent
message received was that not enough
attention has been paid by standard setters
to the differences between public and pri-
vate companies. As a result, FAF recom-
mended the creation of a Private
Companies
Standards
Improvement
Counsel (PCSIC). The PCSIC would sug-
gest private company standards differ-
ences and modifications to the FASB.
Under the proposed model, the PCSIC
would be instrumental in creating a deci-
sion-making framework for private compa-
ny modifications. This framework would be
the basis for deciding when differences
between private and public standards are
appropriate. Under the proposal, the
PCSIC would report to the FAF and work
with the FASB. The current proposal rec-
ommends that a FASB member should
chair the group in order to champion the
cause of privately held entities and the
users of their financial statements.
CSCPA Hosts Private Vs. Public Company
Financial Reporting Discussion
Financial Accounting Foundation and Financial Accounting
Standards Board Representatives Meet with CSCPA Members
Lawrence Smith (left), member of the Financial Accounting Standards Board, and Teresa
Polley, president and chief executive officer of the Financial Accounting Foundation, discuss
the push to create a Private Companies Standards Improvement Counsel.
CSCPA President-elect Noelle Taddei (standing) and her father, member Ed Taddei, chat with
fellow participants during a break.
By Julie McNeal, CSCPA Director of Finance and Operations