Small and midsize privately held, for-profit businesses will have another financial-reporting option when the Financial Reporting Framework for Small- and Medium-Sized Entities is finalized, writes Theresa Bible, senior vice president and credit manager at Enterprise Bank & Trust. The framework will be most appropriate for businesses that do not need financial statements based on generally accepted accounting principles, do not have complex financial statements, do not expect to change ownership in the near term and have a lower level of credit exposure, writes Bible, who is on the task force developing the framework. Banks will appreciate it, too, she says. "I know that in my own case, we will welcome the new framework because it will provide us with relevant information in a familiar way using traditional accounting principles," Bible writes.
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