Press release template_toolkit_Firms by xiuliliaofz


Contact: [Insert contact name, phone and EM]

INSERT FIRM NAME Urges FAF to Adopt Major Changes to Accounting Standards for Privately
Held Companies

CITY—(DATE) – Today, [insert name of firm] sent a letter to the Financial Accounting Foundation
(FAF) urging it to make changes to the accounting standards for privately held companies.

―[FIRM NAME] feels that the debate has gone on for far too long and the time to address the needs of
privately held enterprises is now,‖ stated [Insert name of spokesperson]. ―[Insert Firm’s name]
community is home to [Insert number] of private companies, which are a major growth engine to both our
local and national economy. If modifications to the accounting standards for privately held organizations
were implemented they could put more of their resources towards business generating programs,
including job creation, investment and product development.‖

Private company financial statements, in many ways, are intended to satisfy informational needs different
from those of public company financial statements. However, a great number of our country’s privately
held businesses are subject to the same standards set for publicly held companies. To change this
situation, the American Institute of Certified Public Accountants worked with the FAF and the National
Association of State Boards of Accountancy to form the Blue Ribbon Panel on Private Company
Financial Reporting (Panel); its membership consisted of bankers, preparers, academics, regulators or
representatives of regulators, CPA firms, venture capitalists, sureties, private equity firms and investment

During 2010, the Panel explored the changes necessary to best meet the needs of U.S. users and preparers
of private company financial statements. On January 25, 2011, the Panel sent its report to the FAF’s
Board of Trustees. An overwhelming majority of the Panel’s members agreed that the financial reporting
problems affecting private company constituencies could be alleviated by implementing the following:
               Changes and modifications should be made to existing and future U.S. generally
                accepted accounting principles, where appropriate, for private companies to reflect their
                financial statement users’ unique needs. All such changes would reside in the FASB
                Accounting Standards Codification®.
               A separate board with standard-setting authority should be created under FAF’s
                oversight to set those changes effectively. The new board would consist of 5-7 members
                with private company constituent experience and work closely with the Financial
                Accounting Standards Board.

[Insert name, concluded], ―We have had far too many years of studies and research. Now, it’s imperative
that there be a body made up of people with private company experience who would make the differences
in the standards for a private company financial reporting system.‖

About Firm
[Insert boilerplate]

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