Unique standards for private companies? Let the debate begin
Do private companies need a unique set of accounting standards? It's not a new question, but it will be discussed in greater depth than ever in Chicago on May 10-11 when the newly created Private Company Financial Reporting Committee (PCFRC) holds its its first meetings.
Wielding the gavel will be Judith O'Dell, an MACPA member who chairs the PCFRC. O'Dell is president of O'Dell Valuation Consulting, LLC, CPAs of Chestertown, Md., and doubles as CFO of a small hotel/restaurant and real estate development business.
"Private companies create jobs and encourage entrepreneurialism, both of which are backbones of capitalism," O'Dell says in this Practical Accountant interview. "The (FASB and AICPA) share a commitment to the constituents of private company financial reporting, and recognize the need to carefully evaluate whether current financial reporting standards meet the needs of users of private company financial reports."
Meanwhile, on the global front, the SEC has announced its next steps toward acceptance of international financial reporting standards. You'll find details here.