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Proposed Guidelines For Privately Held Entities On Qualifying Financial Statement Misstatements

[print version]

Click here to view the latest edition of KPMG’s Defining Issues. It describes a newly proposed FASB Staff Position that would require privately held entities, including not-for-profit organizations, to evaluate the effects of prior-year uncorrected misstatements on current-year financial statements under guidance similar to what the SEC issued for registrants last fall. Non-registrants would have to apply both the balance-sheet and income-statement approaches to evaluate whether a misstatement is material in light of relevant quantitative and qualitative factors.

[print version]



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