GAAP now contains a new definition for what constitutes a ”public business entity,” and standard setters have some final criteria for when differences in accounting standards might be warranted for entities that are not public.
The Financial Accounting Standards Board has issued an update to its Accounting Standards Codification to define a public business entity in its master glossary and has issued its final Private Company Decision-Making Framework. The framework is a guide for evaluating accounting and reporting issues for private companies to help determine when differences might be appropriate.
