The purposes of the Update are to (a) amend
the Master Glossary to include one definition of a public business
entity for use in U.S. generally accepted accounting principles and
(b) identify the types of organizations that would be excluded from
the scope of the Private Company Decision-Making
Framework: A Guide for Evaluating Financial Accounting and Reporting
for Private Companies once it is finalized. This Update will not
affect existing requirements.
The definition of a public business entity will
be used by the FASB, the Private Company Council, and the Emerging
Issues Task Force in specifying the scope of future financial accounting
and reporting guidance.
This Accounting Standards Update is the final
version of Proposed Accounting Standards Update 2013-310—Definition
of a Public Business Entity, which has been deleted.
Accounting Standards Update No. 2013-12
Issued: December 23, 2013