2.9 Private Company
ASC 810-10 — Glossary
Private Company
An entity other than a public business entity, a not-for-profit entity, or an employee benefit plan within the
scope of Topics 960 through 965 on plan accounting.
A reporting entity that meets the definition of a private company can elect to apply ASU 2014-07, which provides an accounting alternative to the VIE model for private lessor entities under common control. In October 2018, the FASB issued ASU 2018-17, which broadens the existing accounting alternative that is available to private companies by allowing all legal entities under common control to elect not to apply the VIE guidance as long as certain criteria are met. See Section 3.5 for details.