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Accounting Alternatives for Private Companies

On March 20, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements (a consensus of the Private Company Council). This update allows private company lessee (the reporting entity) to elect an alternative not to apply Variable Interest Entity (VIE) guidance to a lessor entity if the following conditions are met. The private company lessee and... continue reading

New financial reporting framework draws mixed reaction 

Last year, the American Institute of Certified Public Accountants (AICPA) released a new type of special purpose financial reporting framework: “Financial Reporting Framework for Small- and Medium-Sized Entities” (FRF for SMEs). The organization’s intent was to ease reporting for smaller, privately held, owner-managed companies that aren’t required to follow Generally Accepted Accounting Principles (GAAP). The news got plenty of coverage and was widely discussed in accounting and business circles. But... continue reading

Accounting Alternatives for Private Companies

On January 16, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates No. 2014-02 and 2014-3. These updates proactively define a private company and set standards for accounting for goodwill and a simplified hedge accounting approach. Definition of a Private Company The FASB decided that it should proactively determine which entities would be within the scope of the Private Company Accounting Alternatives. Their aim was to minimize the inconsistency and... continue reading

How to take the stress out of an independent audit 

When you think of your next audit by an outside CPA firm, do you fear hearing words such as “unexplained differences,” “unsatisfactory explanation,” “noncompliant” and “we’ll need more time”? If you have an audit phobia, you’re not alone: Some nonprofit leaders equate an independent audit with criticism, demands and time taken from their workweek. But such anxiety may be unwarranted. An audit provides you with a genuine assessment of your... continue reading