June 28, 2013
In a June 17 press release, the Institute of Management Accountants (IMA) voiced their opposition to the American Institute of Certified Public Accountants’ (AICPA) new alternative framework option for financial reporting by smaller private entities, the Financial Reporting Framework for Small- and Medium-Sized Entities (FRF-SME).
Noting that 70% of new job growth in the U.S. comes from small businesses, the IMA agrees that private companies need to maintain credibility with sound internal controls while maintaining the freedom to innovate and create sustainable value for stakeholders. However, it is the IMA’s assertion that businesses should not risk that credibility by adhering to a framework created by a group other than a national standard-setting entity.
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