Private Company Reporting Update August 21, 2013 The world of private company financial reporting is rapidly changing. In June, the Financial Reporting Framework for Small and Medium-Sized Entities (FRF for SMEs) was released by the AICPA.In July and August, the Private Company Council (PCC), which was created by the Financial Accounting Foundation, exposed several new standards for private company reporting. The PCC is currently gathering comments on the exposure drafts. These exposure drafts, once finalized, will be considered acceptable accounting standards under generally accepted accounting principles (GAAP) while the FRF for SMEs is not considered GAAP.The simplification to financial reporting included in the standards released by the PCC will likely not be as extensive as that included in the FRF for SMEs, but they will simplify financial reporting in certain areas none-the-less. In addition, the proposed PCC standards will still be considered GAAP, which the FRF for SMEs is not.The standards will continue to be released, one at a time, as the PCC addresses them. Stay tuned!For any questions regarding FRF for SMEs, please contact Claudia Wolter, CPA, CCIFP, CCA, and co-chair of KatzAbosch’s Audit & Accounting Services Group at 410-828-CPAs or email@example.com.