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.
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