Paul Glotzer: giving private companies a voice inside FASB.

AuthorHay, Laura A.

FASB's commitment to the needs of private companies is demonstrated by the addition of a staff position to work with a new private companies initiative.

Paul Glotzer is a testament to the standard setter's new commitment. His job? Staff a new advisory committee to be formed as a result of the Private Company Financial Reporting initiative of FASB and the AICPA. The result of this joint effort could have a significant impact on the standards setting process.

What does this mean to me?

AICPA's recent survey of key financial statement users indicates that they value generally accepted accounting principles (GAAP). But are current GAAP requirements relevant for all types and sizes of companies? The debate over that question has raged for decades. Some see GAAP requirements as stifling to smaller, resource-strapped companies. Others fear differential requirements would overly burden the financial markets and the accounting profession.

Finding a solution that better meets the needs of private companies and users of private company financial statements has been a controversial challenge. As a first step in finding this solution, FASB has joined with the AICPA to launch a project that will involve private company constituencies more actively in the standards setting process.

As part of this new initiative, FASB has brought in an insider. A CPA with more than 30 years of experience with small companies, Paul Glotzer has been hired as project manager for the private company reporting initiative. His thoughts and opinions carry weight with the organization that impacts how the vast majority of U.S. businesses, and the CPAs who serve them, do their jobs.

Putting his stamp on FASB

Glotzer started his career working in a small firm of four people. He then moved to an eight-person firm, where he spent more than 20 years serving a variety of small business clients. He was highly involved in the Connecticut Society of CPAs, working with the compilation and review committee, and serving as a technical reviewer.

"I've always enjoyed the audit and attestation (A & A) side of the profession. To me, A & A is based on logic, whereas tax seems more vulnerable to political agendas and mood," Glotzer says.

His work with the Connecticut Society brought him in contact with FASB. When FASB decided to hire a project manager who could also speak to the interests of private companies, the organization approached Glotzer. After initially delaying his decision because he...

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