Contractors eye decision by accounting board.A financial accounting standard (known as FAS 150) that would have been detrimental to closely held A phrase used to describe the ownership, management, and operation of a corporation by a small group of people. In a closely held corporation, the same people often act as shareholders, directors, and officers, and no outside investors exist. contracting companies by requiring them to account for mandatorily redeemable shares on their income statements as a liability has been "indefinitely delayed." This standard, proposed by the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ), Norwalk, Conn., would wipe out much of the net worth of private companies and make it extremely difficult for them to obtain bonding and insurance on projects, according to a release from the Associated General Contractors Associated General Contractors of America is the nation's oldest and largest trade association representing the construction industry. It was formed in 1918 following a request by President Woodrow Wilson. of America, Alexandria, Va. Most non-public construction-related companies have buy/sell agreements. FAS 150 originally required companies to classify mandatorily redeemable shares as a liability on their balance sheets. In many cases, this would wipe out the net worth of these closely held businesses, making it difficult to demonstrate collateral to lenders, to insurance companies and to bonding agents. |
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