By Nicola M. White
The Financial Accounting Standards Board on Wednesday put the finishing touches to a definition of “reporting entity” to help it write consistent accounting standards.
The updated definition, for internal use, is based on a proposal the board released in October. It will not affect accounting for the US companies and not-for-profit organizations that use FASB’s accounting rules; it will instead update the board’s Conceptual Framework, a board handbook that is supposed to include bedrock financial reporting concepts. It has multiple references to “reporting entities” but never defines the term.
“That’s a pretty big hole in what is supposed to …
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