PRIVATE COMPANY COUNCIL VOTES TO EXPOSE PROPOSED ALTERNATIVES WITHIN U.S.
GAAP FOR PRIVATE COMPANIES
Norwalk, CT, May 7, 2013—The
Private Company Council (PCC) today voted to move forward with proposed
alternatives within U.S. Generally Accepted Accounting Principles (GAAP)
designed to improve financial reporting for private companies. The PCC´s
approved exposure of the proposals is the first step in a process toward
endorsement by the Financial Accounting Standards Board (FASB).
third public meeting, the PCC made tentative decisions in the following areas,
"Today the PCC took action on issues of
critical importance to private companies, representing an important milestone in
our joint efforts with the FASB to improve financial reporting in the areas of
intangible assets, goodwill, and interest rate swaps," stated PCC Chairman Billy
M. Atkinson. "The robust discussion and collaboration between the PCC and the
FASB made this first step toward improvement possible."
- Relief from separately recognizing certain intangible assets acquired in a
- Allowing for the amortization of goodwill and a simplified goodwill
- Allowing two simpler approaches to accounting for certain types of
interest rate swaps when a private company intends to economically convert the
interest rate on its debt.
The PCC was established by the Financial Accounting
Foundation (FAF) Board of Trustees to work with the FASB to determine whether
and when to modify U.S. GAAP for private companies. For more information on the
PCC, please visit the FAF
website or read the Establishment
of the Private Company Council Final Report.
Financial Accounting Foundation
The FAF is responsible for the
oversight, administration, and finances of both the Financial Accounting
Standards Board and its counterpart for state and local governments, the
Governmental Accounting Standards Board. The FAF also is responsible for
selecting the members of both Boards and their respective Advisory
About the Financial Accounting Standards
Since 1973, the Financial Accounting Standards Board has
been the designated organization in the private sector for establishing
standards of financial accounting and reporting. Those standards govern the
preparation of financial reports and are officially recognized as authoritative
by the Securities and Exchange Commission and the American Institute of
Certified Public Accountants. Such standards are essential to the efficient
functioning of the economy because investors, creditors, auditors, and others
rely on credible, transparent, and comparable financial information. For more
information about the FASB, visit our website at http://www.fasb.org/.