In 2012, the Financial Accounting Foundation, which oversees the FASB, established the Private Company Council (PCC) to improve the process of setting accounting standards for private companies. As the primary advisory body to the FASB on private-company matters, the PCC uses the private-company decision-making framework to guide the FASB on the appropriate accounting treatment for private companies for items under active consideration on the FASB’s technical agenda. The framework focuses on user relevance and cost-benefit considerations for private companies as potential justifications for establishing alternative guidance. Any proposed changes to GAAP must be endorsed by the FASB.
8.1.1 Entities That File or Furnish Financial Statements With or to a Regulator, and Entities That Have Publicly Traded Securities