Spring 2013 issue of Horizons

FEATURE

∙ Generally, the conditions for recognizing revenue would be consistent with current GAAP and not according to the revenue recognition standard proposed by the FASB. ∙ A choice could be made to account for income taxes under either the “taxes payable” method or the “deferred” method. The AICPA notes that the goal of the PCC and the FASB is to streamline accounting and reporting for private companies within the context of GAAP, whereas the FRF for SMEs is not GAAP and is intended instead for private companies that do not require GAAP-based financial statements. The PCC will determine whether exceptions or modifications to existing GAAP are necessary to address the needs of users of private company financial statements. The PCC held its inaugural meeting in Norwalk, Connecticut during December 2012. At the meeting, the PCC identified four initial areas to research for agenda consideration, as follows:

∙ Consolidation of variable interest entities

∙ Accounting for “plain vanilla” interest rate swaps

∙ Accounting for uncertain tax positions

∙ Recognizing and measuring, at fair value, various intangible assets (other than goodwill) acquired in business combinations While the PCC will also be considering other items, it was noted during the meeting that these four topics have consistently come up as potential issues for private companies with respect to financial reporting requirements. The initial agenda items stemmed from recommendations by constituents providing written input to the Blue-Ribbon Panel on Standard Setting for Private Companies in 2010 and by participants in private company roundtables held in 2010 and 2011. The PCC will expand discussions of these topics during 2013 in collaboration with the FAF and the FASB.

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Fred Kostecki, CPA – Saint Louis Partner-In-Charge Assurance Services Group 314.290.3398 fred.kostecki@rubinbrown.com

Bert Bondi, CPA – Denver Partner Assurance Services Group 303.952.1213 bert.bondi@rubinbrown.com

David Duckwitz, CPA – Kansas City Director of Quality Control Assurance Services Group 913.499.4433 david.duckwitz@rubinbrown.com

Todd Pleimann, CPA – Kansas City Managing Partner, Kansas City Office 913.499.4411 todd.pleimann@rubinbrown.com

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