I just need some guidance as to where to start with this. I do not intend to submit any work as my own.

Please help with some guidance.

Accounting for Private vs. Public Companies

FASB has also recognized the importance and potential impact of private company financial statements. According to Forbes, out of the 5.7 million firms with employees in the United States, less than 1 percent have shares listed on a U.S. exchange. Although we tend to think of private companies as small companies, the reality is quite the opposite, with private firms accounting for 86.4 percent of U.S. firms with 500 or more employees.

FASB has come up with a useful publication - Private Company Decision-Making Framework, A Guide for Evaluating Financial Accounting and Reporting for Private Companies.

In this guide, FASB identifies the following five Significant Differential Factors:

1. Number of primary users and their access to management
2. Investment strategies of primary users
3. Ownership and capital structure
4. Accounting resources
5. Learning about new financial reporting guidance

• Are there two of the Differential Factors that are interesting and why.
• How are these Factors different from a publicly traded company.
• Identify the accounting risks associated with each of the chosen Factors. What would be recommended to minimize those risks?
• What components of the Balance Sheet have the most potential to be impacted by the Differential Factors you have chosen? Identify both positive and negative potential impacts.