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ARTICLE · 14 APRIL 2016

Implementing Private Company Accounting Alternatives

Brown Smith Wallace
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In 2014, the Financial Accounting Standards Board (FASB) published four reporting alternatives to simplify U.S. Generally Accepted Accounting Principles (GAAP) for private companies.

United StatesAccounting and Audit
Daniel J. Ward, CPA
Daniel J. Ward, CPA
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In 2014, the Financial Accounting Standards Board (FASB) published four reporting alternatives to simplify U.S. Generally Accepted Accounting Principles (GAAP) for private companies. Now the FASB is making it easier for private companies to elect these alternative reporting methods by eliminating the so-called "preferability assessment."

Little GAAP

For many years, private companies and their stakeholders complained that the FASB catered too much to large, public companies and ignored the needs of smaller, privately held organizations that have less complex financial reporting issues. So, in 2012, the Financial Accounting Foundation (the FASB's parent organization) established the Private Company Council (PCC).

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