U.S. accounting standards have become increasingly complex. Many preparers, public and private, struggle to stay current with the latest interpretations of how the standards should be applied and the volume of newly-issued standards.
A single set of high-quality accounting standards for general purpose use by public and private companies should be followed.
This single set of standards will best reflect the economics of transactions for all companies while reducing the duplicative costs that would result from multiple sets.
To address concerns expressed over complexity and costs of preparation, financial reporting for all companies, public and private, should be streamlined.
When the information in general purpose financial statements exceeds the needs of certain users of private company financial statements, alternative forms of reporting designed for limited purposes could be the solution.