A proposal from the Financial Accounting Foundation (FAF) on the structure and process of FASB’s oversight of standards for private companies and nonprofits is expected by early October according to Teresa Polley, president and CEO of FAF. It comes in response to the Blue Ribbon Panel on Private Company Financial Reporting and will include a 60-day or longer comment period for feedback. Any structural changes are likely to happen in 2012.

Meanwhile, CPAs have submitted nearly 2,500 letters to FAF showing their support for a separate standards board for private company accounting.

AICPA president and CEO Barry Melancon last spring had asked CPAs to show their support for the initiative by writing to the FAF and said he hoped to see 50,000 letters sent. Subsequently and after much discussion, OSCPA’s Executive Board voted last month to support the Blue Ribbon Panel’s recommendation for differential standards for private companies and a private standard setting board, independent of FASB.

The AICPA has provided a toolkit on its website to help members write letters to the FAF in support of a private company board.

The AICPA, the FAF and the National Association of State Boards of Accountancy created the Blue-Ribbon Panel on Private Company Financial Reporting in 2009 to explore the changes necessary to best meet the needs of U.S. users of private company financial statements. The members of the Blue-Ribbon Panel included a cross-section of financial reporting constituencies, including lenders, investors and owners as well as preparers, auditors and regulators.

The members of the panel overwhelmingly voted for the creation of an independent board, not subject to veto power by FASB to create standards for privately held businesses.