Demand grows for FASB rule change following Trump’s situation.

TLDR

• Professor Daniel Tinkelman is requesting a revamp of accounting rules from FASB regarding personal financial statements.
• The request follows ambiguities highlighted during Donald Trump’s civil fraud trial involving GAAP rules.

Daniel Tinkelman, a professor of accounting at Brooklyn College of the City University of New York, has penned a letter to the Financial Accounting Standards Board (FASB) urging a revision of the accounting rules concerning how personal financial statements are handled under generally accepted accounting principles. The request comes in light of the uncertainties and disputes regarding the interpretation of existing rules that were exemplified during former President Donald Trump’s civil fraud trial. During the trial, Trump himself stated that due to the flexibility of GAAP, he considered his personal financial statements to be “worthless.” Expert witnesses further highlighted how GAAP allowed values to differ significantly, prompting Tinkelman to suggest that the FASB assess whether the accounting in this area needs revision and clarification.