The Financial Accounting Foundation (FAF), FASB’s parent organization, is expected this month  to discuss a report recommending a new standard-setting board to establish exceptions and modifications to U.S. GAAP for private companies.

This discussion follows the culmination of a year’s worth of work by a blue-ribbon panel, formed in December 2009 as part of a joint effort by the AICPA, FAF and the National Association of State Boards of Accountancy, to examine private company financial reporting.

At the panel’s final meeting in December 2010, a more detailed outline of its recommendations began to take shape. As proposed, a new standard-setting board, under FAF’s oversight, could have five members with private company financial reporting experience and an estimated $4 million annual budget. It could also face a sunset provision of five years or less to allow an evaluation of the overall process, under the panel’s draft plan. The panel planned to deliver its final report to FAF by Jan. 20, panel Chairman Rick Anderson said in December.

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