December 2013
FRF for SMEsTM—Learning
and Implementation Plan
This new non-GAAP accounting framework produces financial statements that deliver useful, relevant information to private business owners and other interested
parties in a simplified, consistent, cost-effective way. The framework underscores the CPAs’ role as trusted business advisors for America’s small business community.
Use this roadmap to (1) understand the framework and its benefits, (2) help train your professional staff, and (3) communicate with your clients and their financial
statement users proactively about your new service offering. Note that there are several tools and resources to support you in your journey.
Step
1
Action
Description/Considerations
Assign owner or task force
to become an expert (and
take the lead) on
understanding and
implementing the FRF for
SMEs framework.
The FRF for SMEs accounting
framework was developed to provide
a robust and reliable financial
reporting option for private
companies when GAAP is not
needed.
Recommended
Timing
Summer 2013
Tools and Resources
Owner
[A&A Partner,
or A&A
Manager or
Technical
Reviewer]
Learning about the new framework
and being able to offer it as a
reporting alternative to your small
and medium size clients will position
you at the front of the pack in
serving this important business
sector.
aicpa.org/PCPS
aicpa.org/FRF-SMEs
Step
2
Action
Description/Considerations
Familiarize yourself with FRF
for SMEs
Start by dowloading a free copy of
the Framework.
Then check out the Introduction to
FRF for SMEs to help you understand
 Why the framework was
developed
 What types of entities
might be interested in
using the new framework
 The basic concepts of the
framework
Additionally, webcasts, publications,
CPE courses and conference sessions
are available to augment your
understanding of the new
framework.
aicpa.org/PCPS
Recommended
Timing
Summer 2013
Tools and Resources
Owner
AICPA Resources

Financial Reporting Framework for Small- and Medium-Sized
Entities
[Assigned
owner or task
force]
AICPA FRF for SMEs Firm Toolkit

An Introduction to the Financial Reporting Framework for Smalland Medium-Sized Entities

Video explaining the framework and its important features
Publications

Framework and Implementation Resources

FRF for SMEs Alert
aicpa.org/FRF-SMEs
Step
3
Action
Take a deeper look at the
framework to gain an
understanding of this nonGAAP accounting
methodolgy.
Description/Considerations
The framework is concise and selfcontained without excess narrative
and prescriptive rules. The entire
framework is approximately 200
pages. Generally, if a CPA knows the
accrual basis of accounting and
aspects of tax accounting, he or she
should find the framework
uncomplicated.
You can use the Introduction to FRF
for SMEs for a brief overview of each
chapter in the framework and a look
at sample reports.
The Comparison of FRF for SMEs to
Other Bases of Accounting highlights
some of the significant differences
from GAAP, Income Tax and IFRSSMEs. The Ilustrative Financial
Statements and the Illustrations of
the Application of Certain Principles
and Criteria will also help you further
your knowledge of the framework.
Recommended
Timing
Summer 2013
Tools and Resources
Owner
AICPA Resources

Financial Reporting Framework for Small- and Medium-Sized
Entities
[Assigned
owner or task
force]
AICPA FRF for SMEs Firm Toolkit

An Introduction to the Financial Reporting Framework for Smalland Medium-Sized Entities

Comparison of FRF for SMEs to Other Bases of Accounting

Illustrative Financial Statements

Illustrations of the Application of Certain Principles and Criteria

Decision Tool for Adopting an Accounting Framework
Publications

Framework and Implementation Resources

FRF for SMEs Alert
Other



Group study course ((product no. FRFS) – contact your AICPA
Learning sales representative or call 1-888-777-7077.
Self study course
Check frequently for new learning resources
The Framework and Implementation
Resources publication offers insight in
one convenient bundle. You’ll find

sample audit, compilation
and review reports

illustrations of principles
and critieria on topics such
as the initial application of
the FRF for SMEs framework

a presentation and
disclosure checklist

illustrative financial
statements
aicpa.org/PCPS
aicpa.org/FRF-SMEs
Step
4
Action
Description/Considerations
Apply what you have
learned about the FRF for
SMEs to your firm’s audit
and attest methodology and
guidance.
Incorporate FRF for SMEs sample
reports, presentation and disclosure
considerations into your firm
guidance and methodology.
Recommended
Timing
Tools and Resources
Owner
Summer 2013
through Fall
2013
AICPA Resources

Financial Reporting Framework for Small- and Medium-Sized
Entities
[Assigned
owner or task
force]
AICPA FRF for SMEs Firm Toolkit

FRF for SMEs Presentation and Disclosure Checklists

An Introduction to the Financial Reporting Framework for Smalland Medium-Sized Entities (includes sample reports on financial
statements)

Decision Tool for Adopting an Accounting Framework
Publications

Framework and Implementation Resources

FRF for SMEs Alert
5
Facilitate training for your
professional staff and
partner group.
To begin implementing the FRF for
SMEs as a service offering, inform,
educate and train your staff.
Introduce your staff members to the
framework with the Staff Article
included in the toolkit.
Use the Staff Training PowerPoint
template along with the Introduction
to FRF for SMEs and Comparison of
FRF for SMEs to Other Bases of
Accounting to facilitate an in-house
training session on the framework.
Look for other educational resources
including group study and self study
courses coming soon.
aicpa.org/PCPS
Summer 2013
through Fall
2013
AICPA FRF for SMEs Firm Toolkit

Staff Article – coming soon

An Introduction to the Financial Reporting Framework for Smalland Medium-Sized Entities

Comparison of FRF for SMEs to Other Bases of Accounting

Staff Training PowerPoint - powered by PCPS

Decision Tool for Adopting an Accounting Framework
Other



[Assigned
owner or task
force]
Group study course ((product no. FRFS) – contact your AICPA
Learning sales representative or call 1-888-777-7077.
Self study course
Check frequently for new learning resources
aicpa.org/FRF-SMEs
Step
6
Action
Description/Considerations
Inform your clients about
the new framework and the
benefits it may have for their
financial reporting
engagements.
Utilize the components of the FRF for
SMEs toolkit designed specifically for
use with clients or potential clients.
Consider posting these documents on
your website and using them in client
presentations to position your
practice as a leader in providing this
service tailored to America’s small
businesses.
Include the Newsletter/Website
article template in your client-facing
communications to introduce the
new framework and some of its
benefits.
Personalize the Cover Letter and send
it to the clients for whom the
framework may be an appropriate
reporting option.
Recommended
Timing
Summer 2013
Tools and Resources
Owner
AICPA FRF for SMEs Toolkit

Newsletter/Website article

Cover Letter to clients
o For small firms
o For medium firms
o For large firms

Introduction to FRF for SMEs for Private Company
Owners/Managers

PowerPoint Presentation

Flyer to mail or hand out

Logo for firm website or promotional materials/stationery

Video

Backgrounder

Social Media blurbs
The Introduction to FRF for SMEs for
Private Company Owners/Managers
is specifically tailored for you to
present to your clients, along with the
client-facing PowerPoint
presentation.
Post the FRF for SME logo for firms on
your website to promote your service
offering. A short video is also available
to post on your site.
Placing copies of the Backgrounder in
your lobby is a good way spark
conversations with clients.
Power up your online presence with
social media blurbs to inform your
client base and others of the service
you’re providing.
aicpa.org/PCPS
aicpa.org/FRF-SMEs
Step
Action
Description/Considerations
7
Once you’ve determined
which clients may be
interested in using the FRF
for SMEs, more in-depth
conversations can be held to
answer their questions and
discuss transition timelines.
8
Communicate with bankers,
surety companies and others
in your community.
Clients may have questions about
what will be different and what the
transition to the new framework will
require. You can review the
Illustrative Financial Statements and
Frequently Asked Questions and
Comparison of FRF for SMEsto Other
Bases of Accounting with them to
address their questions.
Bankers, surety companies and other
financial statement users that receive
financial statements prepared based
on the FRF for SMEs will find relevant
information they need to understand
the company and its finances. By
introducing the FRF for SMEs to these
stakeholders, you can explain why the
framework was developed and
identify the benefits for them.
Recommended
Timing
Fall – Winter
2013
Fall 2013ongoing
Tools and Resources
AICPA PCPS FRF for SMEs Toolkit

Illustrative Financial Statements

Frequently Asked Questions for Private Companies

Comparison of FRF for SMEs to Other Bases of Accounting

Decision Tool for Adopting an Accounting Framework
Owner
AICPA FRF for SMEs Toolkit for Financial Statement Users

Backgrounder

PowerPoint Presentation

Frequently Asked Questions for Financial Statement Users

Introduction to FRF for SMEs for Financial Statement Users

Comparison of FRF for SMEs to Other Bases of Accounting
[Assigned
owner or task
force ]
[Assigned
owner or task
force]
Consider using the PowerPoint
Presentation, Backgrounder and
Frequently Asked Questions to
intoduce the FRF for SMEs to

banks/credit untions

surety companies

civic or small business
organizations
You’ll position yourself as an
authority in providing this service
benefiting the small business
community.
The Introduction to FRF for SMEs for
Financial Statement Users is tailored
to this audience and can be a useful
tool in gaining acceptance for the
framework. The Comparison of FRF
for SMEs to Other Bases of
Accounting and Illustrative Financial
Statements can foster more in-depth
conversations.
DISCLAIMER: This publication has not been approved, disapproved or otherwise acted upon by any senior technical committees of, and does not represent an official position of, the American Institute of Certified Public Accountants. It is
distributed with the understanding that the contributing authors and editors, and the publisher, are not rendering legal, accounting, or other professional services in this publication. If legal advice or other expert assistance is required, the
services of a competent professional should be sought.
Copyright © 2013 by American Institute of Certified Public Accountants, Inc. New York, NY 10036-8775. All rights reserved. For information about the procedure for requesting
permission to make copies of any part of this work, please email copyright@aicpa.org with your request. Otherwise, requests should be written and mailed to the Permissions Department, AICPA, 220 Leigh Farm Road, Durham, NC 27707-8110.
aicpa.org/PCPS
aicpa.org/FRF-SMEs