By Allison M. Henry, CPA, CGMA, PICPA Vice President - Professional & Technical Standards
AICPA’s FRF for SME Task Force achieved a major milestone on Jan. 30 with the conclusion of the comment period for its first draft of the Financial Reporting Framework for Small-and Medium-Sized Entities. The final version will be influenced by individuals and organizations who took the time to respond. The responses
are varied and point to the need for extensive education and marketing. The success of the new framework depends how widely it is understood and accepted. To contribute to its success, PICPA’s A&A Committee spent a considerable amount of time working through the draft framework and providing comments
to help ensure high quality for the final framework so it is broadly accepted and implemented. Many weighty issues were discussed. For example, should the framework retain the rules–based approach to leases? What is fair value? Should the framework permit financial reporting options? What is the default framework?
The AICPA is firmly behind this effort. It has created numerous resources
to explain it, and have begun to market the new framework. Those who are looking forward to the final project won’t have to wait long. The final version is expected in the first half of 2013. Stay tuned.
Listen in as Bob Durak, Director, Private Company Financial Reporting, discusses the Financial Reporting Framework for Small- and Medium-Sized Entities.