News Release 04/08/15
PCC CHAIR BILLY M. ATKINSON TO STEP DOWN AT END OF TERM;
FAF SEEKS NOMINATIONS FOR SUCCESSOR, NEW PCC MEMBERS
Norwalk, CT—April 8, 2015—Private Company Council (PCC) Chairman Billy M. Atkinson today announced that he will not seek a second term as head of the group. As a result, the Financial Accounting Foundation (FAF) Board of Trustees issued a request for nominations for candidates to succeed Mr. Atkinson next January and to fill other potential vacancies on the Council.
The PCC was established by the Trustees in 2012 to aid the Financial Accounting Standards Board (FASB) in improving the process of setting accounting standards for private companies. In addition to advising the FASB on its current projects, the PCC also suggests to the FASB potential alternatives for private companies within Generally Accepted Accounting Principles (GAAP).
In announcing the call for nominations, Jeffrey J. Diermeier, chairman of the FAF Board of Trustees, thanked Mr. Atkinson, the PCC’s first chairman, for successfully guiding the Council during its initial three years.
“Billy’s unique leadership was instrumental in launching the PCC and setting the right tone of collaboration and cooperation in its work with the FASB. Under his tenure, the Council made important progress in achieving the goals that the Trustees established when the PCC was created in 2012.”
The PCC chairman and members are appointed to three-year terms, with the possibility of reappointment to an additional term of two years. The initial terms of the current ten PCC members will expire on December 31, 2015.
Beginning in 2016, the Trustees will establish staggered terms for some PCC members to promote continuity and an orderly rotation of members. Terms of new PCC members, including the PCC chairman, will begin on January 1, 2016.
"I believe that the PCC in its first three years has made great strides in improving the standard-setting process for private companies,” said PCC Chairman Atkinson. “Our members have done an excellent job of weighing the need for GAAP alternatives for private companies without creating two separate sets of GAAP. And the support we have received from both the FAF and the FASB has been consistent and strong.”
As outlined in the Three-Year Review of the PCC, the Trustees are seeking individuals to serve on the Council who have the skills, expertise, and resources necessary to advise the FASB on active projects. They also must have the ability to identify potential private company alternatives in GAAP and develop and analyze alternative solutions and proposals related to those projects.
Candidates must commit the time to prepare for and attend meetings of the PCC. The PCC chairman and members serve without remuneration, but are reimbursed for out-of-pocket expenses incurred in connection with PCC activities.
PCC Member Profile
The Trustees are seeking users, preparers, and CPA practitioners who are highly regarded within their fields of expertise and have a strong appreciation for the importance of independent standard setting for financial accounting and reporting.
They should be committed to the mission of the FAF, the FASB, and the PCC; demonstrate a concern for the public interest; and have an appreciation for the varying interests and perspectives of investors, lenders, and other users of private company financial statements, and the preparers and auditors of private company financial reports. In reviewing nominations, the Trustees also will consider each candidate’s:
- Background and experience in private company financial accounting and reporting
- History of interest and participation in financial reporting matters or standard-setting activities
- Communication skills, and
- Ability to work collegially and understand and respect conflicting viewpoints.
PCC Chairman Profile
The PCC chairman has the leadership role in carrying out the mission of the PCC. In addition to the qualities sought in all PCC members, PCC chairman candidates should have prior experience serving in leadership roles. Candidates also should have the ability to build, maintain, and strengthen constructive relationships with stakeholders of private company financial reporting; the ability to execute the PCC’s agenda; and the ability to lead effective and timely discussions at PCC meetings.
About the Financial Accounting Foundation
Established in 1972, the Financial Accounting Foundation (FAF) is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut responsible for the oversight, administration, financing, and appointment of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). The FASB and GASB establish and improve financial accounting and reporting standards – known as Generally Accepted Accounting Principles, or GAAP – for public and private companies, not-for-profit organizations, and state and local governments in the United States. For more information, visit www.accountingfoundation.org.
About the Private Company Council (PCC)
The PCC determines alternatives to existing nongovernmental GAAP to address the needs of users of private company financial statements, based on criteria mutually agreed upon by the PCC and the FASB. Before being incorporated into GAAP, PCC recommendations will be subject to a FASB endorsement process. The PCC also serves as the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB’s technical agenda. For more information, visit www.fasb.org/pcc.