Financial Reporting Advisors, LLC (FRA) was formed in 2003 by three long-time colleagues and former Arthur Andersen LLP national office partners – John Stewart, Amy Ripepi, and Rick Petersen. All three founders are certified public accountants with more than 25 years of public accounting experience, including over 10 years each in Andersen’s national office. In March 2007, Scott Taub joined the firm. Scott, a certified public accountant, has nearly seven years of experience in the Office of the Chief Accountant at the Securities and Exchange Commission and over 10 years in public accounting at Arthur Andersen LLP where he worked with John, Amy and Rick in the national office. Further biographical information can be found in the Professionals section of this website.

We have worked with many of the world's largest companies and have presented our views on financial reporting matters to standards setters, such as the Financial Accounting Standards Board and International Accounting Standards Board, and regulators, such as the U.S. Securities and Exchange Commission. We currently serve on the AICPA's Accounting Standards Executive Committee (AcSEC) and the AICPA's SEC Regulations Committee. Additionally, we have served as members of the FASB's Emerging Issues Task Force, the FASB's Advisory Committee (FASAC), and numerous other taskforces and committees. We have authored articles on a wide array of subjects, as listed in the Publications section of this website.

Here are examples of professional groups we have served on related to selected current and historical accounting topics:

• Derivatives - Our Credentials:
FASB's Financial Instruments Task Force; AICPA Financial Instruments Task Force; FASB's Derivative Implementation Group; EITF working groups for Issue 91-4, Hedging Foreign Currency Risks with Complex Options and Similar Transactions; Issue 95-11, Accounting for Derivative Instruments Containing both a Written Option-Based Component and a Forward-Based Component; Issue 98-10, Accounting for Contracts Involved in Energy Trading and Risk Management Activities


• Consolidations - Our Credentials:
FASB Consolidations Working Group; EITF working groups for Issue 90-15, Impact of Nonsubstantive Lessors, Residual Value Guarantees, and Other Provisions in Leasing Transactions (generally referred to as accounting guidance for SPEs); Issue 96-16, Investor's Accounting for an Investee When the Investor has a Majority of the Voting Interest But the Minority Shareholder or Shareholders Have Certain Approval or Veto Rights; Issue 98-6, Investor's Accounting for an Investment in a Limited Partnership When the Investor is the Sole General Partner and the Limited Partners Have Certain Approval or Veto Rights


• Revenue Recognition - Our Credentials:
Implementation Working Group on SEC Staff Accounting Bulletin No. 101, Revenue Recognition; EITF working groups for Issue 91-6, Revenue Recognition of Long-Term Power Sales Contracts; Issue 00-21, Revenue Arrangements with Multiple Deliverables; Issue 00-25, Vendor Income Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products


• Income Taxes - Our Credentials:
FASB's Implementation Group; FASB's project for the reconsideration of FASB Statement No. 96, Accounting for Income Taxes; EITF working groups for Issue 91-3, Accounting for Income Tax Benefits from Bad Debts of a Savings and Loan Association; Issue 94-1, Accounting for Tax Benefits Resulting from Investments in Affordable Housing Projects; Issue 98-11, Accounting for Acquired Temporary Differences in Certain Purchase Transactions That Are Not Accounted for as Business Combinations

None of our work is leveraged to managers or staff. Our highly collaborative, hands-on approach to problem solving, combined with our extensive experience and straightforward communication style uniquely position us to help our clients simplify the complex.

We specialize in the accounting and financial reporting for complex business transactions. With over 80 years of combined experience, we assist corporations, audit committees, analysts, law firms, and accounting firms in understanding and applying accounting principles and SEC regulations to a wide array of challenging transactions. Some of the topics we frequently address include: asset impairment, business combinations, compensation, consolidations (including variable interest entities), environmental liabilities, financial instruments (including derivatives), income taxes, leasing, revenue recognition, securitizations, and SEC reporting. Information about our service offerings can be found in the Services section of this website.

Our analysis reflects an unbiased, objective assessment of the accounting literature as applied to specific facts. We offer no audit, tax or business consulting services; we bill based on time incurred (rather than results achieved); and we take no equity interests in our clients. By limiting our roles and relationships, our perspective is unique and our objectivity is protected.

Accounting is an integral part of the process of making informed business decisions. We understand the need of accounting and finance professionals to move at the speed of business. Because all the work we do is performed by one or more of our founders, we can help clients obtain accounting advice in timeframes that meet their business requirements.

We explain our thinking in plain English. We also relate our positions to the economics of the transaction. While well-versed in the technical language and jargon of financial reporting, we take pride in our ability to state our views simply and concisely. Importantly, we tailor our communication style to ensure that our views are transparent regardless of the accounting knowledge of our client. Whether we are dealing with board members, chief executives, operating managers, analysts, financial reporting professionals, regulators, or attorneys, our objective remains the same: to simplify the complex.