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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 assisted us with a multitude of services, from auditing to manufacturing consulting to strategic planning to family and estate planning. Regardless of our needs, they bring a level of intelligence to every situation; they’re consummate professionals.

In the role of manufacturing consulting, they’ve served as consultants to our board of directors. In addition, we’ve participated in several benchmarking studies conducted by both Plante & Moran and the Precision Metalforming Association; those studies have been extremely helpful, not only in terms of benchmarking the Su-Dan Company but also in helping us fulfill our QS and TS certification requirements.”

Dennis Keat
The Su-Dan Company