The new US Private Company Council (PCC) will hold its first public meeting December 6th at the offices of the US Financial Accounting Foundation (FAF) in Norwalk, Conn.
Formed by FAF to work with the US Financial Accounting Standards Board (FASB) to develop modifications and exceptions to US GAAP for private companies, the PCC will open its agenda with an official handoff and transition from the US Private Company Financial Reporting Committee (PCFRC), which has advised FASB on private company issues since 2006. The PCFRC is scheduled to be dissolved.
Other items on the agenda include:
A discussion on the private company decision-making framework FASB is developing to inform the process that will be undertaken by the PCC and FASB.
A briefing from FASB staff on private company issues and projects.
Preliminary discussion of current FASB projects and previously issued standards relevant to private companies.
“The ten members of the PCC are eager to begin addressing the critical issues facing users, preparers, and auditors of private company financial statements,” PCC Chairman Billy Atkinson said in a statement. “Our success will be based on collaboration and mutual respect for and between the PCC and the FASB, which I am confident we will achieve, and our ability to obtain meaningful feedback on all issues from private company stakeholders.”
The inaugural meeting will be broadcast live on FAF’s website. Those interested in observing the meeting in person must reserve a seat in advance; seating is limited.
Atkinson has said the first standards he expects the PCC to review include FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, codified in FASB Accounting Standards Codification (ASC) Topic 740, Income Taxes. FIN 46(R), codified in ASC Topic 810, Consolidation, also is on Atkinson’s list for immediate attention.
—Ken Tysiac (email@example.com) is a CGMA Magazine senior editor.