Question - Whether or not all companies - public and private - should use the same accounting standards has been a subject of debate for decades. However, this issue has taken on more importance during the last few years, primarily due to (1) increasing complexity of financial reporting requirements, and (2) the PCAOB's issuance of differential auditing standards for public companies.
In addition to "regular GAAP," both of the following alternatives have now come to the forefront in this country:
1. Private Company Council (working with the FASB) - this group creates differential standards (or GAAP-exceptions) for private companies
2. Financial Reporting Framework for SMEs (from the AICPA) - this is a non-GAAP alternative for private companies
Your assignment is to write a paper - approximately 1-2 pages - arguing for or against private company financial reporting. In developing your position, be sure to distinguish between the above 2 approaches for private companies. Cite references that you use to support your position.
You may also want to visit the FASB's website to get information on the Private Company Council. However, these resources are intended only to provide background information - you will need additional and current resources for your written assignment.