Members of the ruling Council of the American Institute of CPAs at their meeting here passed a resolution supporting the development of generally accepted accounting principles for privately held, for-profit entities and instructing the institute's management to work with accounting rule makers to develop a process for developing such standards.
Following a discussion Monday morning that reviewed the findings of a task force on the issue of GAAP for private, for-profit entities, Council members overwhelmingly passed the motion supporting the development of GAAP for those entities "based on concepts and accounting that are appropriate for the distinctly different needs of the constituents of private company financial reporting." The motion also instructs AICPA management "to work with the Financial Accounting Foundation and the Financial Accounting Standards Board to identify and implement a process to develop GAAP for privately held, for-profit entities that would result in recognition measurement and disclosure differences, where appropriate, from current GAAP as applied by public companies."
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