FASB issues private company framework and definition of public business

The FASB issued a private company decision-making framework that it and the Private Company Council (PCC) plan to use to identify the differences in the information needs of users of private company and public company financial statements. The FASB and the PCC
intend to use the framework to find opportunities for private companies to reduce the cost and complexity of preparing US GAAP financial statements.

The FASB issued a new definition of a public business entity that will be considered in future standard setting, such as determining which entities can use any private company accounting alternatives under US GAAP that the FASB will provide. The FASB expects to issue its first two private company alternatives in early January.