MONTVALE, N.J.--(BUSINESS WIRE)-- IMA^®, one of the largest and most respected associations focused exclusively on advancing the management accounting profession, has released a comment letter to the Board of Trustees of the Financial Accounting Foundation (FAF) regarding its proposed plan to improve the standard-setting process for private companies. Read the letter on IMA’s website: http://www.imanet.org/about_ima/advocacy_activity/advocacy_details/11-12-22/FAF_Proposal_on_Standard_Setting_Procedures_for_Private_Companies.aspx

Under the proposal, FAF would work jointly with the Financial Accounting Standards Board (FASB) and a new Private Company Standards Improvement Council (PCSIC) would be formed within the FASB organization. The PCSIC would develop criteria for determining whether and when exceptions or modifications to U.S. Generally Accepted Accounting Principles (GAAP) are warranted for private companies.

Answering FAF’s request for public comment, IMA’s Small Business Financial and Regulatory Affairs Committee and Financial Reporting Committee collaborated to express support of FAF’s proposal and offer its recommendations for how the council can realize its mission. For example, IMA:

• Supports the creation of the proposed PCSIC to reduce complexity of financial reporting for both public and private companies;
• Believes that a single set of GAAP for both public and private companies is appropriate with one standard setting body, FASB;
• Supports the expanded focus on private companies via representation on FASB’s board and FAF’s new PCSIC. IMA’s committees assert that private company representation will help standard setters better understand and meet their unique needs.

“The growing complexity of financial accounting and the difficulties in complying with accounting standards are significant and costly problems that both public and private companies face,” said Irvin André Alexander, III, CMA, CFM, CPA, CAE, co-author of the comment letter and chairman of IMA’s Small Business Financial and Regulatory Affairs Committee. “The PCSIC has the potential to reduce complexity and allow the Financial Accounting Standards Board to be more responsive to private company needs.”

To learn more about IMA’s advocacy efforts, please visit the advocacy section of IMA’s website: http://www.imanet.org/about_ima/advocacy_activity.aspx.

About IMA^® (Institute of Management Accountants)

IMA^®, the association for accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA^® (Certified Management Accountant) program, continuing education, networking, and advocacy of the highest ethical business practices. IMA has a global network of more than 60,000 members in 120 countries and 200 local chapter communities. IMA provides localized services through its offices in Montvale, N.J., USA; Zurich, Switzerland; Dubai, UAE; and Beijing, China. For more information about IMA, please visit www.imanet.org.

CONTACT:

IMA
Marc Gerrone, 201-474-1502
mgerrone@imanet.org
or
Stern + Associates
Tara Baumgarten, 908-276-4344, x-219
tara@sternassociates.com

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