PCC Holds September Meeting

The FASB’s Private Company Council (PCC) held a meeting on September 24, 2024. Topics discussed at the meeting included the following:

• Agenda priorities — The PCC added to its agenda projects on (1) applying the guidance on credit losses in ASC 326 to “current accounts receivable and contract assets arising from revenue transactions” and (2) “the presentation of contract assets and contract liabilities for private companies in the construction industry.” In addition, the PCC discussed (1) outreach related to the application of the guidance in ASC 470-50 (on debt modifications and extinguishments) to exchanged or modified term loans and (2) issues related to the formation of the PCC’s leases working group.
• FASB’s 2024 agenda consultation — The PCC recommended that the FASB consider several aspects of private-company financial reporting during its 2024 agenda consultation. Topics for the Board to consider include disaggregation of financial reporting information; applicability of the projects on current expected credit losses and presenting contract assets and contract liabilities to entities other than private companies; simplifying the guidance on debt modifications, distinguishing liabilities from equity, and consolidation for private companies; and disclosures related to contingent liabilities, debt guarantees, and related-party transactions.

The next PCC meeting is scheduled for December 16–17, 2024. For more information, see the PCC meeting recap on the FASB’s Web site.