The AICPA's Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs™) is a special purpose, non-GAAP financial reporting framework developed specifically for owner-managed and closely held businesses. Built on traditional accounting principles and historical cost accounting, the framework provides a practical, cost-effective approach to preparing financial statements when U.S. GAAP reporting is not required.
Designed with the needs of private company owners, lenders, and financial statement users in mind, FRF for SMEs emphasizes relevance, reliability, and simplicity while