The framework is not GAAP, but is complementary to efforts  by the Private Company Council of the Financial Accounting Foundation to modify GAAP for private companies.

The AICPA says that some private businesses will see the framework as an alternative to existing reporting options. Larger private businesses, it says, may choose to use GAAP for private companies while others might use GAAP for public companies.

The AICPA describes the framework as having streamlined, common-sense requirements that are based on traditional and proven accounting methods. FRF for SME’s uses methods that include historical cost. It provides the ability to tailor presentation statements to users. It includes targeted disclosure requirements, reduces book-to-tax differences and also products financial statements that can be compiled reviewed or audited.