An inside look at the AICPA/FASB private company financial reporting committee.

AuthorJohnson, Amy
PositionInterview

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Amid the talks of globalization and changing regulations for public companies, the question remains of how these changes will affect private companies. One group charged with addressing that question is the Private Company Financial Reporting Committee (PCFRC), a joint committee of the Financial Accounting Standards Board (FASB) and the AICPA. Ohio Society member Tom Groskopf, CPA, CVA with Barnes Dennig & Co in Cincinnati joined the PCFRC last fall and gives us a look inside this pivotal organization.

What is the role of the Private Company Financial Reporting Committee (PCFRC)?

The PCFRC is part of a broad initiative by FASB and tile AICPA to further improve FASB's current standard-setting process to better meet the financial reporting needs of private companies and the users of their financial statements. It held its first meeting in May 2007. We consider differences in prospective and existing GAAP accounting standards related to private companies based on user needs and cost/benefit considerations, and make formal recommendations to FASB.

What role do you fill on the committee? Is this your first time representing the CPA profession in a national capacity?

I am one of four CPA practitioners on the committee, along with four users, four preparers and the chair. Before being appointed to the PCFRC, I served on the AICPA PCPS

Technical Issues Committee (TIC) for more than three years. The last year I was the Accounting Standards Zone Chair. Through my tenure on TIC, I was able to interact directly with FASB and become more familiar with their thought processes. The PCFRC was a natural next step for me.

What benefit have you seen personally from serving on a national professional committee?

CPAs can gain valuable knowledge, skills and experience by interacting with standards setters, which readily transfers to client responsibilities. Our firm has experienced tremendous growth in the last five years and having insight on the activities and thought processes of the FASB and other standards setters has been critical to serving our clients effectively and efficiently.

Why should CPAs volunteer to serve in similar statewide or national roles on behalf of the profession?

Private company CPA practitioners are underrepresented in tile deliberative process in standards setting, which is why groups like the PCFRC and TIC are important. However, they can't possibly communicate all of the needs of more than 22 million private companies in the United States. I encourage more...

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