IMA Reaffirms Support of FAF's Plan to Improve Accounting Standards for Private Companies
IMA®, one of the largest and most respected associations focused exclusively on advancing the management accounting profession, supports the Financial Accounting Foundation's (FAF) plan to establish the Private Company Council (PCC), a new body announced yesterday to improve the process of setting accounting standards for private companies.
On January 10, 2012, IMA released a statement summarizing its comment letter to the Board of Trustees of the FAF in support of its October, 2011 proposed plan (see “IMA Supports FAF Plan to Improve Accounting Standards for Private Companies”).
“Private companies are critical to the vitality and growth of the U.S. economy,” said Jeff Thomson, CMA®, IMA president and CEO. “We indicated early on that FAF achieved the proper balance in its October recommendations – a standards setting process that gives private companies credibility, flexibility and agility in creating sustainable economic growth.”
Many of the original recommendations from IMA's January comment letter are incorporated in the PCC's responsibilities and operating procedures, including details around agenda setting, membership terms, frequency of meetings and the oversight process.
“IMA is encouraged that the FAF took our recommendations into consideration when developing this plan,” said Irvin André Alexander, III, CMA, CFM, CPA, CAE, co-author of the comment letter and chairman of IMA's Small Business Financial and Regulatory Affairs Committee. “We had tremendous confidence that the original proposal would work. Further, we applaud FAF's continued efforts to reduce the complexity of financial reporting with its extensive market outreach efforts, including roundtables in four cities which I and other IMA members participated in.”
To learn more about IMA's advocacy efforts, please visit the advocacy section of IMA's website: http://www.imanet.org/about_ima/advocacy_activity.aspx.
About IMA® (Institute of Management Accountants)
IMA®, the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking, and advocacy of the highest ethical business practices. IMA has a global network of more than 65,000 members in 120 countries and 200 local chapter communities. IMA provides localized services through its offices in Montvale, N.J., USA; Zurich, Switzerland; Dubai, UAE; and Beijing, China. For more information about IMA, please visit www.imanet.org.