Financial reporting framework for small and medium size entities

The AICPA has issued its Financial Reporting Framework for Small- and Medium-Sized Entities. The FRF for SMEs™ accounting framework is designed for America's small business community. It delivers financial statements that provide useful, relevant information in a simplified, consistent, cost-effective way. The FRF for SMEs™ framework may be used when GAAP financial statements are not required.

Resources

The following resources are available to help you learn more about the FRF for SMEs™ accounting framework:

• Introduction to the Financial Reporting Framework for small- and medium-sized entities (SMEs™)

• Download the free framework (PDF)

• Frequently asked questions and answers

• Accounting framework decision tool

• Comparisons of the FRF for SMEs™ reporting framework

• Learning and implementation plan for FRF for SMEs™

• FRF for SMEs™ presentation and disclosure checklist

• Illustrative financial statements prepared using the FRF for SMEs™

• Illustrations of the Application of Certain Principles and Criteria for the FRF for SMEs™

Overview

What - The FRF for SMEs™ framework is an additional non-GAAP financial reporting option. The framework draws upon a blend of traditional methods of accounting with some accrual income tax methods. It consists of simplified principles and focuses on the most relevant information needs of Main Street America and their financial statement users.

Why - Research over the years and input from stakeholders demonstrated the marketplace need for such an accounting framework.

Who - A working group of CPA professionals and AICPA staff who have years of experience serving smaller-to-medium-sized private entities crafted the framework.

Contact Information

Technical inquiries on the framework should be directed to the AICPA's A&A Hotline (free for AICPA members).