AICPA committee seeks private company relief from some elements of revenue standard
An AICPA committee has asked FASB to provide relief for private companies and certain conduit debt obligors from some elements of the new revenue recognition standard.
In a letter to FASB dated Jan. 17, the AICPA Private Companies Practice Section Technical Issues Committee (TIC) wrote that certain recognition and measurement decisions were made during the standard’s development before the Private Company Council (PCC) was created.
The PCC advocates for private companies during FASB’s development of standards and initiates the process of private company GAAP alternatives when necessary. TIC wrote that the magnitude and significance of the new revenue recognition standard warrants consideration of recognition and measurement differences for private companies, as well as the earlier effective date and disclosure differences for certain conduit debt obligors.
TIC requested that FASB:
“We do not believe that certain individual requirements … in determination of the amount and timing of revenue to be recognized provide relevant information to users of private company financial statements at a reasonable cost,” TIC wrote.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.
Research & References of AICPA committee seeks private company relief from some elements of revenue standard|A&C Accounting And Tax Services