Blue-Ribbon Panel Holds First Meeting

The first meeting of the panel was held April 12, 2010 in the New York offices of the AICPA. The key portion of the meeting featured the viewpoints of those panel members who use private company financial statements, including three lenders, a venture capitalist, a private equity manager, a surety, and a business owner.

Most members agreed that U.S. GAAP is seen as a gold standard in financial reporting, and that consistency of GAAP is key. In addition they said that financial statements are only a part of decision making and that management’s character plays an important role in those decisions. Panel members said in using financial statements, they make adjustments to fit their own needs and they would be willing to make further changes if GAAP were modified. But having too many exceptions and variances erodes the notion of what is considered to be generally accepted, they said.

At the panel’s next meeting preparers and auditors will share their viewpoints. In addition, representatives from the International Accounting Standards Board and the Canadian Accounting Standards Board will speak with the panel about IFRS for SMEs and Canadian GAAP for Private Enterprises.

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