Research Paper on:
Comments on the FASB and AICPA Joint Proposal

Unformatted Sample Text from the Research Paper:
Companies ("Enhancing the Financial Accounting," 2006). Within the document are several questions as this accounting document is one that is searching for feedback. In fact, it is designed to see  how the proposal is received and to use feedback to make appropriate changes. In essence, a plan is laid out so that business owners and their accounting firms may comment  on the proposal. The first three questions concern the improvement of accounting standards, the financial reporting needs of companies, and the basis on which GAAP should be used. More  specially, the first question is: "Do you believe the proposal contained in paragraphs 16-29 will improve the accounting standard-setting process for private companies? " ("Enhancing the Financial Accounting," 2006). It  seems that to some extent the rules will allow for more flexibility and cater to the needs of the private company. At the same time, there is a sense that  the new rules may be too lenient. Construction Financial Management Association for example believes that some of the standards are artificial and arbitrary and noted this when answering this specific  question. The company writes: " To impose an artificial standard for admission potentially excludes the most qualified individuals ("Construction Financial Management Association," 2006). Here, there is a suggestion that this  rule is limiting and this is a fair comment. At the same time, it does appear that the spirit of the rule is such that the standards will be flexible  enough so that the limitation will be small. Also, the rules encourage diversity in terms of the selection process. This may appear limiting to some, but from the view of  the auditor, it is a needed change. For example, a candidate may have a particular set of experiences that make it prudent for him to sit on the board. Yet,