On Sept. 27, 2007, FEI’s Committee on Private Companies (CPC) Standards Subcommittee filed a comment letter with the International Accounting Standards Board (IASB) on the Exposure Draft of its proposed International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs).

The letter, signed by CPC Standards Subcommittee chair William Koch, stated, “We appreciate the IASB’s leadership in addressing the accounting and reporting requirements for entities that do not have public accountability.” The letter further noted, “We are very supportive of the process of establishing reporting standards that take into consideration the needs of financial statement users (such as lenders) for this very important economic sector of the world’s economy.”

FEI’s CPC Standards Subcommittee also said, “We support the objective of a stand-alone document for those entities that do not have public accountability,” but added, it does not believe a size test is appropriate. While supporting the draft overall, the subcommittee provided specific comments on consolidated financials, income tax reporting and cash flow reporting.

 For further information, contact Serena Dávila, Director, Technical Activities for FEI and liaison for the Committee on Private Companies (CPC) at sdávila@financialexecutives.org.