As proposed, the private company standards could be used by companies of all sizes, Melancon says. Moreover, the standards would be considered GAAP, so private companies that have to meet a debt covenant requiring financial statements in accordance with GAAP would comply.

Judging by that the FAF has received, public opinion heavily favors having a separate set of standards for private companies.

Opinions also seemed to favor, on balance, a separate standard setting board, which would work with the FASB, for private companies. However, this issue hasn't seemed to generate the same intensity as the desire for a separate set of standards itself. "It's tough to say if a separate board is needed," Abernathy says. If one is, the two boards would need to work together, he adds.