PCC Holds December Meeting

At its December 16–17 meeting, the FASB’s Private Company Council (PCC) gave an update on the progress it has made over the past year with respect to the four priority projects on its current agenda: (1) short-term trade accounts receivable and contract assets, (2) debt extinguishments and modifications, (3) construction contractors’ presentation of contract assets and contract liabilities, and (4) simplifications to lease accounting. In addition, the PCC discussed the following FASB projects:

• Accounting for government grants — PCC members indicated that they generally agreed with the revisions to the accounting and disclosure requirements related to government grants in the Board’s recent proposal on this topic. However, some meeting participants suggested that the Board could consider including additional examples and expanding the disclosure requirements in the final standard.
• Research project on intangible assets — Concerns were expressed regarding the potential complexity and costs private companies would encounter if they were required to recognize additional intangible assets. PCC members asked the Board to consider reaching out to users of private-company financial statements to assess the types of information about intangibles that would be most decision-useful.
• Research project on key performance indicators — The PCC provided the Board with feedback on the latter’s invitation to comment on key performance indicators (KPIs). Among other things, PCC members noted that views are mixed on which KPIs are the most decision-useful. In addition, some members indicated their belief that any future requirements related to this topic should be optional for private companies.

The next PCC meeting is scheduled for March 6, 2025. For more information, see the PCC meeting recap on the FASB’s Web site.