FOR IMMEDIATE RELEASE
ICBA Supports FASB-AICPA Plan to Examine Ways to Improve Private Company Accounting
Community Banks Are Frequent Users of Private Company Financials
Washington, D.C. (August 15, 2006)—The Independent Community Bankers of America (ICBA) said that it supports a joint Financial Accounting Standards Board (FASB) and American Institute of Certified Public Accountants (AICPA) proposal to examine ways to enhance the financial accounting and reporting standard-setting process for private companies. The majority of ICBA members as well as many of their business customers are private companies.
"ICBA believes that there is great merit in looking at whether all aspects of accounting and disclosure standards are necessary for all companies, particularly as accounting and auditing costs are increasing due to the Sarbanes-Oxley Act," the trade group said in a comment letter to FASB and AICPA on their joint plan.
ICBA supports the creation of a proposed committee whose mission is to provide recommendations that will help FASB determine whether there should be differences in prospective and existing accounting standards for private companies. "We believe that this committee can serve as an important resource and give FASB a perspective that will be useful in its work," ICBA said.
FASB and AICPA released a proposal entitled Enhancing the Financial Accounting and Reporting Standard-Setting Process for Private Companies as a way to examine whether financial reporting standards meet the needs of users of private company financial reports. Both organizations state that they are committed to exploring ways to enhance the value, transparency, and cost effectiveness of financial reporting for private companies.
"ICBA greatly appreciates that FASB and AICPA recognize the need to carefully evaluate whether financial reporting standards meet the needs of users of private company financial reports and whether changes can be implemented by private companies in a cost-effective manner," said ICBA in its comment letter.
The comment letter can be found at www.icba.org.