The Financial Accounting Standards Board (FASB) has included privately held financial institutions, including privately held banks, in its definition of a private company. The decision, which can potentially affect a majority of banks, is part of FASB's effort to review and possibly reduce burdensome reporting requirements for private enterprises.
Reducing the fair-value disclosures burden for private companies -- which ABA has long supported -- is a key area FASB is currently addressing. The board is expected to issue a proposal sometime this year.
Although FASB still must address certain issues in defining “private,” the board excluded from the private-company definition entities that are required to file financial statements with the SEC for purposes of issuing securities in the public market.