The FASB wants to hear from creditors, investors, donors, and other stakeholders of nonpublic entity financial reports. Read on to find out how your input can help improve financial reporting by private companies and not-for-profit organizations.

The FASB - Who We Are

The Financial Accounting Standards Board (FASB) is the independent, private sector organization that sets accounting and reporting standards for both public entities (which issue securities that trade in public markets) and nonpublic entities (which include private companies and not-for-profit organizations).

Why are financial reporting standards important to creditors, investors, donors and other stakeholders of financial reports of nonpublic entities?

Financial reporting is a communication between a private company or not-for profit organization and those who provide resources to that company or organization. Our goal is to set accounting and reporting standards that produce financial information that is useful in helping those who use financial reporting to (a) decide whether to provide resources to an entity, and (b) assess whether the management of the entity has made good use of the entity’s resources.

We believe sound financial reporting facilitates stronger capital markets and more efficient allocation of resources by helping creditors, investors, donors and other stakeholders make informed decisions based on objective, credible and neutral information. The purpose of financial reporting is to provide an objective representation of an entity’s financial performance and condition.

The FASB is always seeking to improve financial reporting. In carrying out this objective, it carefully weighs the cost of making accounting and reporting changes and strives to ensure that the benefit of the improved information to users justifies the costs that the changes would impose.

Why does the FASB want to hear from nonpublic entity stakeholders?

In order to improve U.S. GAAP and to consider both the costs and benefits of proposed improvements, the FASB and its staff need to hear directly from (a) stakeholders of all entities about the type of financial information they need and (b) all entities about the costs required to provide the information that their stakeholders seek. This webpage and the FASB’s outreach efforts are designed to help private companies, not-for-profit organizations and their stakeholders provide the FASB with the input it desires.

What is the FASB nonpublic entity team, and what do they do?

The objective of the nonpublic entity team is to ensure that the FASB receives timely input from private company and not-for-profit organization stakeholders throughout all stages of the standard-setting process. The FASB established the team to help the Board identify and analyze issues specific to nonpublic entities and to provide detailed insights related to these issues early in its standard-setting process. The team wants to hear from you and address your concerns. The team is also available to explain any aspects of proposed, ongoing, or completed projects, including questions that may arise during the implementation of new standards.

How can I provide my comments?

You can provide comments on specific proposals electronically to director@fasb.org. As part of its open decision-making process, the FASB asks for public feedback on Discussion Papers, Exposure Drafts, and other proposals that it issues at various stages of a technical project. Your submission will become part of the public record.

Oftentimes, before submitting formal comments, nonpublic entities and their stakeholders seek clarity about aspects of a proposed Accounting Standards Update or tentative decisions reached on an ongoing project. The nonpublic entity team is available to help stakeholders get the desired clarity. You can send an e-mail to NPEteam@fasb.org, with your inquiry and a description of your desired clarification, which will be directed to the appropriate staff member.

Are there other ways I can help?

Yes. The nonpublic entity team regularly reaches out to private companies and not-for-profit organizations and to lenders, donors, auditors and other stakeholders interested in their financial reports. Generally that outreach is performed to seek input on questions raised by the Board or staff about matters in ongoing technical projects. We maintain contact lists, and we welcome additions to that list.

You can sign-up electronically to be included in the FASB’s resource list of private company contacts. There is no obligation or expectation that you respond to all requests for input; however, your participation does provide an excellent opportunity for you to help.

The FASB also has a Not-for-Profit Resource Group. Although the Board and staff may call on resource group members, its members primarily serve as a resource to the FASB’s Not-for-Profit Advisory Committee (NAC). From time to time all members or particular types of members (for example, only preparers or only creditors, donors and grantors) are surveyed on matters of interest to the NAC. The time requirements generally are light but we do expect and have received a reasonably high rate of participation from these resource group members. If you are interested in helping in this way, please contact Ron Bossio at rjbossio@fasb.org or 203-956-5213.

What types of nonpublic entity stakeholders does the FASB want to hear from?

The FASB would like to hear from all stakeholders interested in the financial reports of nonpublic entities, including the preparers, practitioners, and users of those financial reports. Among those stakeholders is a broad range of users that include:

• Lenders, significant vendors, lessors, and other creditors
• Investors, including absentee owners of private companies and trustees of Employee Stock Ownership Plans (ESOP)
• Donors, including foundations and grantors to not-for-profit organizations
• Regulators, accrediting bodies, and other similar oversight bodies
• Insurance providers
• Sureties
   

What does the FASB want to learn from stakeholders?

The FASB wants to know what stakeholders of nonpublic entity financial reports think about a variety of issues. Among other things, we want to learn whether:

• Financial statements are providing useful information that appropriately reflect the economics of the entity’s activities, resources and obligations
• Financial statements include information that is unnecessary, redundant, or confusing
• Proposed changes in accounting and reporting will result in communication from a company or organization that is more clear, complete, and comparable
• The costs of implementing and complying with a new standard are justified by the increased benefits of the information improvements.

Nonpublic Entities Staff
Jeff Mechanick Assistant Director jdmechanick@fasb.org
Ron Bossio Senior Project Manager rjbossio@fasb.org	Not-for-Profit Financial Reporting: Financial Statements Not-for-Profit Advisory Committee (NAC)
Mike Cheng Project Manager mkcheng@fasb.org	Private Company Decision-Making Framework (PCDMF) Consolidations (Topic 810): Applying Variable Interest Entity Guidance to Common Control Leasing Arrangements Interest Rate Risk Disclosures
Lisa Muehlbauer Assistant Project Manager lamuehlbauer@fasb.org	Leases
Rahul Gupta Project Manager rgupta@fasb.org	Accounting for Financial Instruments Impairment of Indefinite-Lived Intangible Assets Investment Companies EITF Issues
Jenifer Wyss Project Manager jjwyss@fasb.org	Disclosure Framework
Elizabeth Gagnon Project Manager eagagnon@fasb.org	Revenue Recognition Definition of a Nonpublic Entity Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination
Ryan Egan Project Manager raegan@fasb.org	Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps– Simplified Hedge Accounting Approach
Richard Cole Project Manager racole@fasb.org	Not-for-Profit Financial Reporting: Financial Statements