Private Company Council Holds Initial Meeting
On December 6, 2012, the Private Company Council (PCC), a new body created to improve the standard-setting process for private companies, held its inaugural meeting in Norwalk, Connecticut.
The PCC was established in May 2012 by the Board of Trustees of the Financial Accounting Foundation (FAF) to work with the Financial Accounting Standards Board (FASB) to determine the need for modifications of U.S. Generally Accepted Accounting Principles (GAAP) for private companies.
At the meeting, the PCC identified four initial areas to research for agenda consideration, as follows:
- Consolidation of variable interest entities
- Accounting for “plain vanilla” interest rate swaps
- Accounting for uncertain tax positions
- Recognizing and measuring, at fair value, various intangible assets (other than goodwill) acquired in business combinations
While the PCC will also be considering other items, it was noted during the meeting that these four topics have consistently come up as potential issues for private companies with regards to financial reporting requirements.
The initial agenda items stemmed from recommendations by constituents providing written input to the Blue-Ribbon Panel on Standard Setting for Private Companies in 2010 and by participants in private company roundtables held in 2010 and 2011. The PCC will expand discussions of these topics during 2013 in collaboration with the FAF and the FASB.
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