Published May 14, 2012

FASB Rules on Privately Held Financial Institutions

At its April 25, 2012, board meeting, the Financial Accounting Standards Board (“FASB”) voted in a 5-2 decision to allow privately held community banks, credit unions, and some insurance companies to be considered private companies for purposes of compliance with generally accepted accounting principles (“GAAP”) in the United States. The FASB considers a privately held financial institution to be one that is not required to file or furnish financial statements with the Securities and Exchange Commission.  However, this ruling by itself does not automatically entitle depository institutions more time to adopt new accounting rules.  The FASB says it will examine each future amendment to GAAP on an individual basis to determine when privately held financial institutions will be allowed the same transition period for new accounting standards as other private companies.

To discuss how the professionals at PYA can assist your financial institution, please contact the experts listed below at PYA, (800) 270-9629.

Recommended Links:

Learn more about PYA’s Financial Advisory Services

Follow us on Twitter

WE ARE REQUIRED BY IRS CIRCULAR 230 TO INFORM YOU THAT THE FOLLOWING DISCUSSION WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, NOR RELIED UPON, BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING ANY PENALTIES THAT MAY BE IMPOSED UNDER FEDERAL TAX LAW. THE ADVICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED IN THE DISCUSSION. EACH TAXPAYER SHOULD SEEK ADVICE BASED ON ITS PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.

Interested in Learning More?

Sign Up for Our Latest Thought Leadership!



    Select Your Subscriptions