skip to main content

Considering an IPO? Time to Factor in FASB Public Company Accounting Rules

Considering an IPO? Time to Factor in FASB Public Company Accounting Rules

IPO markets have seen a sharp downturn this year, although cautious optimism within the market could indicate an uptick during the end of 2023. However, before a private company expects to go public, one of the biggest obstacles is the transition from private to public company accounting. The conversion of a company's accounting and ipo readiness can take between three and nine months, depending upon the experience of management and the CFO's understanding of public company rules.

“There have been recent news of potential large high-profile IPOs that may be on the horizon,” Partner Ro Sokhi said. “There is some cautious optimism; I don’t think that it’s in the clear that the market is definitely recovering, but there are encouraging signs.”

For private companies, determining “does it make sense” to file an IPO is a struggle for a lot of companies, Sokhi explained. “It’s not just the accounting standards; it’s having the folks in place because a lot of times private companies are very lean organizations who may have a CFO who is not really in the accounting world,” he said.

The next obstacle for companies is to form a team of legal, accounting, and advisory professionals necessary to gather the documentation for SEC registration statements and GAAP compliant financial statements. “But can they get that information? Do they have the skills and knowledge to put those documents together?” said Sokhi. “Then ultimately bandwidth is a huge one – you’ll know because you’ll be getting requests with incredibly tight timelines,” he said. “Sometimes the deals are killed right there because they just can’t get the information on time."


Read the full article published by Reuters.

Have a Question?

Fill out the form to speak with Ro or an SEC professional

Hide Firm Disclaimer


UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.