'GAAP is Where I buy me Jeans!'

Most of the comment letter responses the Financial Accounting Standards Board gets from its constituents wouldn’t be thought of as funny or with any type of humorous intent.  In fact, some have sounded a little bit sinister. 

But every now and again, someone sends in a response that appears to be just accountants having a good chuckle. 

An agenda consultation paper FASB issued Aug. 4 is the most recent recipient of a rather amusing comment letter response—sent in by a lone CPA Aug. 5.

FASB issued the paper to get feedback about which batch of projects the board should tackle for improvements, so the CPA (whom we won’t name) must have dispatched it the following day.  

Please Take a Sabbatical.

Describing himself as an American Institute of CPAs member, the CPA says relative to FASB rules, his clients have asked questions like “how can this be generally accepted when no one ever asks me my opinion” and those less technically oriented have chortled “GAAP is where I buy me jeans.”

“Please take a sabbatical,” the CPA begs FASB in the letter, “so that those members, like myself, who need to perform client service in addition to studying the rules, have a realistic possibility of complying with the ever changing standards.”

Smaller Firms.

Smaller accounting firms tend to gasp somewhat whenever more FASB rules come out.  

Many of their clients are family owned businesses that don’t necessarily have professional accountants as their CFO.  Many, instead, have a bookkeeper so they really depend on the outside accountant to deal with FASB rules.  Those accountants are usually with smaller accounting firms and don’t have the same resources as the larger ones—so they have do have a lot to catch up on.

The Good News.

There’s some good news.  Generally, new accounting rules that target private companies are modifications to full accounting provisions and less costly to apply.

And those new rules that are issued for all companies—both public and private—also have special provisions for private companies. Private companies have an additional year after the effective date of public companies’ to apply them.

Continue the discussion at Bloomberg BNA Accounting LinkedIn.     

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