Pub. 3 2013-2014 Issue 6

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S May• June 2014 15 FEATURE ARTICLE CONNIE SPINELLI CSPINELLI@BKD.COM “Public business entity” applies to U.S. GAAP accounting standards, and the definition became effective upon its addition to the Master Glossary in December 2013.” Considering Private Company Alternatives P rivate company initiatives are mov- ing quick ly. The def init ions of “public business entity” and “pri- vate company” have been estab- lished and added to the Master Glossary. In January 2014, the Financial Ac- counting Standards Board (FASB) issued two standards offering private companies financial accounting and reporting alterna - tives to U.S. generally accepted accounting principles (GAAP). Both standards are effective for the first annual period begin - ning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015, with early adop- tion permitted. Thismeans qualifying com- panies could adopt and apply the standards to calendar year 2013 financial statements. This article focuses on items for compa- nies not meeting one of the five criteria of a public business entity (and, by default, meeting the definition of a private company) to consider before adopting an accounting alternative. Additional considerations are provided for financial institutions. Public Business Entity Overview In December 2013, FASB issued its last accounting standard of the year, Account- ing Standards Update (ASU) 2013-12, Definition of a Public Business Entity. The standard defined a public business entity for U.S. GAAP financial reporting purposes and amended the Master Glossary. The definition was issued to determine which entities would be within the scope of fu-  Considering Private Company | continued on page 16