FRF-SME Under Development
The AICPA is developing Financial Reporting Framework for Small- and Medium-sized Entities (FRF-SME) as a self-contained other comprehensive basis of accounting (OCBOA). This is intended for use by privately held small- to medium-sized entities where GAAP financial statements are not required. Many SMEs and the users of their financial statements could benefit from a non-GAAP accounting system that has undergone public comment and professional scrutiny, and is consistently applied. The AICPA approach will utilize a blend of accrual income tax methods and traditional accounting methods. The new framework would be more relevant, less complex and cost beneficial to prepare.
The AICPA would like to hear from members in the business and industry who work for private companies regarding development of a new self contained financial reporting framework for small and medium entities. You can refer to the AICPA website (aicpa.org) for more information or to provide feedback.