FASB Flash Report - June 2013
On June 11, 2013, the American Institute of Certified Public Accountants (AICPA) released its 206-page Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs OR the framework), which is a new accounting framework option designed to help small businesses prepare streamlined, relevant financial reports. This special purpose framework is an “other comprehensive basis of accounting” (OCBOA) and is intended for smallerto medium-sized for-profit private companies that do not need U.S. generally accepted accounting principles (GAAP) financial statements. However, the framework is neither authoritative nor is its use required. The framework is available for immediate use by incorporated or unincorporated entities across various industries. Specific industry guidance is not included in the framework. The framework is not intended as a substitute for GAAP when GAAP-based financial statements are necessary, as determined by the management of a private company and its financial statement users.