New York-The blue ribbon panel formed in December to address the 30-year-old debate over whether to issue a separate set of reporting standards for private companies is set to address a number of key issues that hopefully will move the protracted discussion to the next level.

The group revealed that it plans to meet four or five times in public meetings, and the key topics that it will address include a closer look at the recently issued International Financial Reporting Standards for Small and Medium-sized Enterprises, the cost of preparing statements in U.S. generally accepted accounting standards, and the problems associated with transitioning from being a private company to being a public one.

At press time, the first meeting was scheduled for April at the headquarters of the American Institute of CPAs. The panel plans to issue a report and recommendations to the Financial Accounting Foundation by the end of 2010.

A move toward private company standards would not necessarily be one to rush into during a period of economic recovery, but panel chairman Rick Anderson, who also serves as chairman of Seattle-based CPA and business advisory firm Moss Adams, said that it may be a perfect time to be asking the right questions.

"First of all, if any change occurs - and I emphasize the if - we're not talking about change in six months," Anderson said. "In some respects, there's no better time to ask questions than in a volatile time, because it exposes any issues that do or don't exist. So maybe this is a great time to do it. We'll see whether or not a separate set of standards could have or would have been more useful for private companies."

By the full agreement of the three sponsoring organizations - the AICPA, the FAF and the National Association of State Boards of Accountancy - the majority of the panel members are users of financial statements. Other members represent auditors and the preparers of financial statements.

One major factor the panel must consider is the recent issuance of IFRS for SMEs by the International Accounting Standards Board. The standard, which public companies in the U.S. have the option of adopting, may provide the information that most users of financial reports need.

Tom Quaadman, executive director of the U.S. Chamber of Commerce's Capital Markets Competitiveness Center, noted that the standard for small and midsized entitites would not necessarily solve the problem.

"It behooves everyone to have the discussion and look at what the International Accounting Standards Board has done," said Quaadman. "One issue we need to address here in financial reporting is something other countries don't have to worry so much about - litigation. We are a litigious society, and our financial reporting has to reflect that."

David Hirschmann, the center's president and chief executive officer, will be representing the U.S. Chamber of Commerce on the blue ribbon panel.

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