Research on the American Institute of CPAs (AICPA) Financial Reporting Framework for Small and Medium Enterprises (SMEs) co-authored by Walker College of Business Assistant Professor Scot Justice was cited in a recent AICPA Journal of Accountancy post, Lenders express confidence in FRF for SMEs.
Justice's paper, The effect of SME reporting framework and credit risk on lenders' judgments and decisions, was published in the Journal of Accounting and Public Policy in July 2017 and reported that lenders exhibited similar confidence in the AICPA Financial Reporting Framework for SMEs as they do in financial statements prepared in accordance with U.S. GAAP (Generally Accepted Accounting Principles) for low credit risk loans.
The study provided the first quantitative evidence that the AICPA Financial Reporting Framework for SMEs is a viable alternative to financial statements prepared in accordance with GAAP in certain circumstances.
Appalachian State University Research
