PCC Holds June Meeting

At its June 24, 2024, meeting, the FASB’s Private Company Council (PCC) discussed the following topics:

• Agenda priorities — The PCC has indicated that it supports further research related to the following topics:

  • Challenges with applying the credit losses guidance in ASC 326 to short-term trade accounts receivable and contract assets.
  • Complexities and costs associated with applying the guidance in ASC 470-50 on debt modifications and extinguishments.
  • Giving private companies in the construction industry the option of “presenting conditional retainage and overbillings gross on the balance sheet.”
  • Simplifying certain aspects of the leasing guidance in ASC 842.
• Hedge accounting improvements — The FASB provided the PCC with an update on this project, which includes certain simplifications that are expected to benefit private companies.
• Induced conversions of convertible debt instruments — The FASB discussed its proposed Accounting Standards Update on this topic, including comment-letter feedback, next steps, and effects of the proposal on certain debt arrangements.

In addition, the PCC held a joint meeting with the Small Business Advisory Committee on June 25, 2024. Topics discussed at this meeting included (1) the accounting for and disclosure of software costs, (2) the accounting for government grants, (3) derivatives scope refinements — presentation, and (4) accounting alternatives and changes in accounting principles.

For more information about the PCC’s June 24 meeting, see the meeting recap on the FASB’s Web site.