We previously reported on AICPA’s issuance of Financial Reporting Framework for Small- and Medium -Sized Entities (FRF) and NASBA’s announced opposition to FRF. After discussions and clarifications, NASBA and AICPA have issued a joint statement announcing additional guidance for how and when to use FRF, and NASBA’s dropping its opposition to the project.
This is good news for the profession. AICPA and NASBA work closely together on many projects and some thought NASBA’s high profile opposition to FRF might damage ongoing cooperation between the two groups. On the contrary, the speed with which the two organizations reached an accommodation demonstrates the good working relationship between both parties. NASBA posted the complete joint statement on the NASBA website.
The crux of the agreement seems to be a new collaborative effort between AICPA and NASBA to develop a decision-making tool to assist entities with determining whether the new small business accounting framework suits their needs.