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IFRS Accounting Standards for Private Companies

Many have long thought that public companies would drive adoption of the International Financial Reporting Standards (IFRS), the international counterpart to U.S. Generally Accepted Accounting Principles (GAAP). However, with progress toward the SEC’s much publicized proposed roadmap to the adoption of IFRS accounting standards slowed, the continued push toward the adoption of IFRS has received support from an unusual source – private companies.

The IFRS standard-setting body is close to finalizing new guidance that will provide a simplified version of IFRS specifically designed to meet the unique needs of private companies. The standard will simplify many of the most complex areas of accounting, including goodwill, fair value, pensions, and others, and also calls for a reduced set of financial statement disclosures.

Many companies have been calling for a similar set of simplified standards for private companies in the US (the big GAAP vs. little GAAP debate), but only modest progress has been made to date. Perhaps IFRS accounting standards will be the answer that private companies have been looking for.

“Plante & Moran has been conducting our audits for several years. They’re very proactive in keeping us abreast of all the compliance and accounting changes occurring in the nonprofit industry. I feel confident that when Plante & Moran makes a recommendation, their decision is based on solid research and industry expertise. Their responsiveness to any of our audit issues is also very reassuring. I look forward to our continued relationship with Plante & Moran.”

Reid S. Thebault, President & Chief Executive Officer
YMCA of Metropolitan Detroit, Detroit, MI