Private Companies
The FASB began working with the Private Company Council in 2012 to address standard-setting issues raised by private company stakeholders. Established in 2012 by the FAF, the PCC is responsible for determining whether and when to develop modifications to U.S. GAAP for private companies. The PCC also serves as the primary advisory body to the FASB on the appropriate treatment for private companies for standards under active consideration on the FASB’s technical agenda.
In June, the FASB voted to endorse and expose for public comment three alternatives within U.S. GAAP proposed by the PCC to address concerns raised about the relevance and complexity of certain aspects of GAAP for private company stakeholders. The proposals involve accounting for intangible assets acquired in business combinations, goodwill, and certain types of interest rate swaps.