[IMGCAP(1)]During 2013, the scene was set for significant changes in financial reporting for private companies and evolved into a battle between standard-setting bodies. All the changes centered on the desire to simplify, and therefore reduce the cost of accounting for private companies. The question is, however, is simpler good enough?

Smaller, private companies have long complained about having to adhere to Big GAAP, or U.S. Generally Accepted Accounting Principles. They are complicated, expensive and not necessary to the everyday needs of private companies. In response, different and sometimes competing standard-setting bodies have their own ideas about how to address the issue, leaving private companies and their users in some confusion about which standards to live by. It’s important because financial operations and results are potentially greatly affected.

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