"We are profoundly disappointed that the Financial Accounting Foundation (FAF) is not proposing to create a new independent board to set differences in U.S. GAAP standards, where appropriate, for privately held companies," Melancon said in a prepared statement.

Melancon said that creating those standards was the cornerstone of the Blue Ribbon Panel on Standard Setting for Private Companies' report. He added that 3,000 private companies and a majority of the state CPA societies had lobbied in support of the created of an independent standards-setting board.

Melancon said that the AICPA would continue to support the establishment of such a body. He continued that, "Members of a board with authority to set accounting standards for private companies must possess the perspective of those stakeholders, and the FASB cannot be sufficiently restructured or possess enough of the essential private company representation needed to set GAAP differences for private companies."