FASB Issues Staff Q&A Document on Whether Private Companies and Not-for-Profits Can Apply SEC SAB 118
Norwalk, CT, January 11, 2018—The Financial Accounting Standards Board (FASB)
staff today issued a Staff Q&A document on whether private
companies and not-for-profit organizations can apply U.S. Securities and
Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 118 (Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act).
In the Q&A, the FASB staff indicates that they would not object to
private companies and not-for-profit organizations applying SAB 118, and
observe that if a private company or not-for-profit organization
applies SAB 118, they would be in compliance with GAAP. The FASB staff
consulted with stakeholders and members of the Private Company Council in forming the view contained in the Staff Q&A.
The Staff Q&A can be found here, and the PDF version can be downloaded here.
About the Financial Accounting Standards Board
Established in 1973, the FASB is the independent, private-sector,
not-for-profit organization based in Norwalk, Connecticut, that
establishes financial accounting and reporting standards for public and
private companies and not-for-profit organizations that follow Generally
Accepted Accounting Principles (GAAP). The FASB is recognized by the
Securities and Exchange Commission as the designated accounting standard
setter for public companies. FASB standards are recognized as
authoritative by many other organizations, including state Boards of
Accountancy and the American Institute of CPAs (AICPA). The FASB
develops and issues financial accounting standards through a transparent
and inclusive process intended to promote financial reporting that
provides useful information to investors and others who use financial
reports. The Financial Accounting Foundation (FAF) supports and oversees
the FASB. For more information, visit www.fasb.org.