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IMA Advocacy Committees Release Public Comment Letters to FASB and COSO
November 29, 2012
Stern + Associates
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Montvale, N.J., November 29, 2012 – IMA®, one of the largest and most respected associations focused exclusively on advancing the management accounting profession, has released two public comment letters to the Financial Accounting Standards Board (FASB) and one to the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.
The letters – drafted by IMA’s advocacy committees, including the Financial Reporting Committee, Small Business Financial and Regulatory Affairs Committee, the eXtensible Business Reporting Language (XBRL) Committee, and IMA’s COSO Advisory Panel – propose changes to the various framework proposals on topics including disclosures in financial statements, Generally Accepted Accounting Principles (GAAP) for private companies, and external financial reporting. These letters include:
FASB Invitation to Comment: Disclosure Framework:
In response to FASB’s request for stakeholder input
on its Disclosure Framework, IMA contends that the Framework would not streamline disclosures – and perhaps would increase them – given the emphasis on additional disclosures for items that could potentially impact future cash flows. Click here to access the full comment letter.
FASB Invitation to Comment:
Private Company Decision-Making Framework: Answering FASB’s request to comment
on its framework – which outlines an approach for deciding whether and when to modify U.S. GAAP for private companies – IMA points out the need for a GAAP-based framework to enable private companies to demonstrate credibility, transparency, and flexibility. Click here to access the full comment letter.
COSO Framework Refresh:
Invitation to Comment: IMA answered COSO’s request for public comment
on its recent report, which details how to apply its internal control Framework to external financial reporting. According to IMA, the updated Framework enables users from large or small, public, private, governmental or non-for-profit organizations to effectively develop and maintain internal control systems that enhance the likelihood of achieving their objectives. Full access to the full comment letter: Click here to access the full comment letter
“These papers are a cumulative effort of IMA’s committee members, which are comprised of seasoned accounting and finance executives from a diverse group of private, for-profit, and not-for-profit organizations around the world,” said Jeff Thomson, CMA, IMA president and CEO. “Their deep expertise in management accounting, internal controls, and risk management provides unparalleled insight into key issues facing accountants, including disclosure frameworks and private company financial reporting.”
Linda Devonish-Mills, CMA, CPA, IMA director of market advocacy added, “These letters reflect IMA’s commitment to its members and the accounting profession to lead the discussion on key legislative and regulatory issues around the world.”
For more on IMA’s advocacy efforts, visit: http://www.imanet.org/about_ima/advocacy_activity.aspx.
About IMA® (Institute of Management Accountants)
IMA®, the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking, and advocacy of the highest ethical business practices. IMA has a global network of more than 65,000 members in 120 countries and 200 local chapter communities. IMA provides localized services through its offices in Montvale, N.J., USA; Zurich, Switzerland; Dubai, UAE; and Beijing, China. For more information about IMA, please visit www.imanet.org.