The question of whether or not to have a separate set of accounting standards for private companies has been debated for several decades. The most recent look by the profession at this idea was carried out by the Private Company Financial Reporting Task Force. The Task Force's final report was issued in 2005. Tom Ratcliffe, PhD, CPA discusses what issues were considered and what conclusions the Task Force reached regarding this important question.

Note: Reporting of CPE credit to a CPA’s state board is the responsibility of the CPA. Subscribers to CPE Network Accounting & Auditing Report may not receive duplicate credit for this material, which previously aired in the November 2005 edition of this program.

Chapter 1 summarizes the final report of the AICPA Private Company Financial Reporting Task Force.

Chapter 2 contains in-depth commentary on the Private Company Financial Reporting Task Force.

Chapter 3 contains review problems.

• Be able to identify who the primary stakeholder groups of financial reporting are

• Know that GAAP statements have value to users

• Be aware of the possibility of differential accounting standards for nonissuers