Private Company Council Holds Second Meeting on February 12Norwalk, CT, February 6, 2013—The Private Company Council (PCC) will host its second public meeting from 9:00 a.m. to 3:00 p.m. on Tuesday, February 12, 2013, at the Financial Accounting Foundation (FAF) offices in Norwalk, Connecticut. The PCC was established by the FAF Board of Trustees to work with the Financial Accounting Standards Board (FASB) to determine whether and when to modify U.S. Generally Accepted Accounting Principles (GAAP) for private companies.
During the PCC’s first meeting on December 6, 2012, the PCC directed the FASB staff to develop agenda research memoranda on the following issues identified as being of concern by stakeholders, to be discussed at the second meeting:
- Accounting Standards Codification (ASC) Topic 810, Consolidation (formerly FIN 46(R) and FAS 167), which involves financial reporting by companies involved with variable interest entities (organizations in which a controlling interest is not based on the majority of voting rights)
- Accounting for “plain vanilla” interest rate swaps, which are used to convert variable interest rates on loans to fixed interest rates as referenced in ASC Topic 815, Derivatives and Hedging (formerly FAS 133)
- ASC Topic 740, Income Taxes (formerly FIN 48), which is intended to increase relevance and comparability in reporting information about uncertain tax positions
- Recognizing and measuring various intangible assets (other than goodwill) acquired in business combinations, including the use of Level 3 fair value measurements and the disclosures associated with them, as referenced in ASC Topic 805, Business Combinations, and ASC Topic 350, Intangibles–Goodwill and Other (formerly FAS 141(R) and FAS 142).
The PCC meeting will be webcast live. Those interested in observing the meeting in person must reserve a seat in advance, as seating is limited. The meeting agenda will be posted in advance on the FAF website.
For more information on the PCC, please visit the FAF website or read the Establishment of the Private Company Council Final Report.
About the Financial Accounting Foundation
The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board and its counterpart for state and local government, the Governmental Accounting Standards Board. The FAF also is responsible for selecting the members of both Boards and their respective Advisory Councils.
About the Financial Accounting Standards Board
Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.