House Members Air Concerns About Franchise Accounting Change

Leaders of the House Small Business Committee are pressing the U.S. audit regulator to explain how it will enforce an accounting rule change that has alarmed privately held franchisers like California Closet Co., Nothing Bundt Cakes, and Goldfish Swim School LLC.

• Rep. Nydia Velazquez (D-N.Y.), and Rep. Steve Chabot (R-Ohio), sent a letter to Public Company Accounting Oversight Board Chairman William Duhnke Feb. 11 asking that their staffs be briefed on how auditors will enforce new rules on accounting for revenue. Despite November 2018 staff guidance from the Financial Accounting Standards Board that said ...