FASB Issues Staff Q&A Document on Whether Private Companies and Not-for-Profits Can Apply SEC SAB 118
Norwalk, CT, January 11, 2018—The Financial Accounting Standards Board (FASB) staff today issued a Staff Q&A document on whether private companies and not-for-profit organizations can apply U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 118 (Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act).
In the Q&A, the FASB staff indicates that they would not object to private companies and not-for-profit organizations applying SAB 118, and observe that if a private company or not-for-profit organization applies SAB 118, they would be in compliance with GAAP. The FASB staff consulted with stakeholders and members of the Private Company Council in forming the view contained in the Staff Q&A.
The Staff Q&A can be found here, and the PDF version can be downloaded here.
About the Financial Accounting Standards Board
Established in 1973, the FASB is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. The Financial Accounting Foundation (FAF) supports and oversees the FASB. For more information, visit www.fasb.org.