Accounting For Private Versus Public Companies

In this assignment, you will compare accounting principles for private and public companies. As you may have discovered as you’ve reviewed the materials for this course, most of what is learned in accounting courses focus on public companies, not private ones. GAAP, as you have also learned from your studies, maybe followed by private companies, but it is only required to be used by publicly traded companies. FASB, of course, is designated by the SEC to establish and improve GAAP, so their focus is primarily on publicly traded companies.

FASB has also recognized the importance and potential impact of private company financial statements. According to Forbes, out of the 5.7 million firms with employees in the United States, less than 1 percent have shares listed on a U.S. exchange. Although we tend to think of private companies as small companies, the reality is quite the opposite, with private firms accounting for 86.4 percent of U.S. firms with 500 or more employees.

Don't use plagiarized sources. Get Your Custom Essay on
Accounting For Private Versus Public Companies
Just from $13/Page
Order Essay

In recognition of the growing importance and impact of private companies, FASB has come up with a useful publication: Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies.

In this guide, FASB identifies the following five Significant Differential Factors:

A number of primary users and their access to management.
Investment strategies of primary users.
Ownership and capital structure.
Accounting resources.
Learning about new financial reporting guidance.
For this assignment, write a 2–4 page paper in which you:

Select two of the differential factors that interest you, and briefly explain why.
In your own words, explain the factor and why it is different from a publicly-traded company.
Identify the accounting risks associated with each of your chosen factors. What would you recommend to minimize those risks?
Based on what you have learned this quarter, what components of the Balance Sheet have the most potential to be impacted by the differential factors you have chosen? Identify both positive and negative potential impacts.
This course requires the use of Strayer Writing Standards (SWS). For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

Analyze the impact of different factors on accounting risks and balance sheets.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

As the best, my homework help website in the world, Writersabc.com strives to deliver only high-quality finished papers to all customers. We value impeccable quality and guarantee that we will deliver on that promise more than anything else. We will deliver!
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-Back Guarantee

Have you received your finished paper but are not satisfied with what our writer submitted? You can initiate our money-back guarantee to get your money back with no strings attached.

Read more

Zero-Plagiarism Guarantee

Writersabc.com is the best my homework help website in the world. At WritersABC, we have a team of certified, tried, and tested writers who work around the clock to ensure that you receive only high-quality, 100% original finished papers.

Read more

Free-Revision Policy

At WritersABC, we guarantee all our customers of the best essay writing service in the writing industry. And that’s precisely what we strive to deliver. As such, we encourage all our customers to utilize our unlimited free-revision policy if you aren’t satisfied with your paper. Don’t accept any paper until you are 100% satisfied with it.

Read more

Privacy Policy

We value the trust that our clients accord us and respect every customers’ rights to personal data protection. We will never share, sell, or rent any information that we collect from you with any third parties. Both your personal and financial information is safe with us.

Read more

Fair-Cooperation Guarantee

We have only gotten this far with the help of our loyal customers and a team of dedicated experts. As the best, my homework help website, WritersABC implores customers to help make our writers’ work easier. Visit our fair-cooperation guarantee for more information on the same.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency