The VSCPA’s Accounting & Auditing Advisory Committee (A&A) has submitted a comment letter to the Financial Accounting Standards Board (FASB) in support of FASB’s Proposed Accounting Standards Update: Definition of a Public Business Entity: An Amendment to the Master Glossary.
In the letter, the committee wrote:
“We agree that the Exposure Draft addresses an area where guidance is needed. As mentioned in the Exposure Draft, current guidance includes multiple definitions of a public entity within U.S. Generally Accepted Accounting Principles (GAAP). We believe that the definition proposed is appropriate and agree with the provision to exempt not-for-profit entities from the determination of public or private entities. The proposal will be helpful to both preparers and auditors in determining which provisions of U.S. GAAP apply to which entities.”