Changes in GAAP Accounting and the Impact on Mid-Market Businesses
One of the best ways to learn more about the middle market is to take advantage of events tailored specifically to middle market companies. The National Center for the Middle Market and the Association for Corporate Growth recently convened a group of experts from GE, Deloitte, and The Ohio State University to provide a customized mid-market overview of the most recent and significant changes in generally accepted accounting principles (GAAP). The featured experts highlighted how these GAAP changes can impact mid-market companies.
Click here to access the presentation and webinar playback.
According to a recent blog by Chuck Leddy, NCMM contributor, middle market companies should keep an eye on some important areas currently under consideration, including Revenue Recognition and Leasing and, to a lesser extent, Financial Instruments and Insurance Contracts. While changes may appear daunting, the Financial Accounting Standards Board (FASB), through the Private Company Council, will bear in mind whether and when alternative accounting or reporting may be necessary for qualifying private companies. In fact, two recent amendments have been issued to permit alternative accounting/reporting for qualifying private companies.
It is important to keep track of these debates and the changing standards as they're issued. Mid-market companies may need systems to capture, classify, and record transactions to comply with any changes. It's certainly a lot of work and cost, but noncompliance is much costlier. Consulting with an accounting professionals is highly recommended as the changes roll out and impact your middle market business.
For a broader prospective on changes, click here to refer to the FASB project agenda.