With the release of the Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs), the AICPA has developed this Alert to build awareness and understanding of this new non-GAAP financial reporting framework available for immediate adoption.
This Alert highlights the purpose and benefits of the new framework to privately-owned small- and medium-sized entities and explains many of the accounting principles of the new FRF for SMEs. Comparisons to other commonly used frameworks such as U.S. GAAP and the income tax basis of accounting are included to give readers practical insight in the suitability of the framework to their business or clients. It also explains the transition requirements related to the adoption of the FRF for SMEs.
Who will benefit from this Alert?
B&I financial managers to help evaluate whether FRF for SMEs is right for their business.
Smaller and regional accounting firms to assist small business clients with understanding the benefits of FRF for SMEs where the client is not required to prepare financial statements in accordance with U.S. GAAP.
Financial statement users, such as bankers, to help their clients comfortably understand why the FRF for SMEs may be a good financial reporting option for the customer as well as the bank.
For additional resources on the new Financial Reporting Framework for Small- and Medium-Sized entities, please visit aicpa.org/FRF-SMEs.
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