Norwalk, CT—November 18, 2015—The Board of Trustees of the Financial Accounting Foundation (FAF) today released a report outlining revisions to the operating procedures of the Private Company Council (PCC) that are intended to improve the group's effectiveness.

The updates focus on the manner in which the PCC provides the Financial Accounting Standards Board (FASB) with private company perspectives on the FASB's active agenda projects, and on how the PCC communicates those perspectives to its stakeholders.

Established by the Trustees in 2012, the PCC serves as the primary advisory body to the FASB on the appropriate treatment for private companies for accounting standards under active consideration on the FASB's technical agenda. The PCC also proposes to the FASB alternatives to existing Generally Accepted Accounting Principles (GAAP), if needed, to address the needs of private company stakeholders.

The FAF Trustees amended the Responsibilities and Operating Procedures of the PCC to reflect these improvements and issued a final report that concluded its three-year review of the PCC and its operations. The objective of the review was to determine whether the PCC is meeting its primary responsibilities and mission, and provide an assessment of the PCC's continuing role and effectiveness.

In the course of the review, the FAF Trustees received more than 50 comment letters from a diverse group of stakeholders that provided input on the PCC's effectiveness, accomplishments, and role in improving financial accounting and reporting standards for private companies.

"Most stakeholders expressed support for the PCC and agreed that it has been successful in addressing the needs of users of private company financial statements, while reducing costs and complexity for preparers," said FAF Chair Jeffrey J. Diermeier. "Stakeholders also suggested improvements—including increased transparency around the PCC's views on active FASB agenda projects, and more robust communication of those views to the FASB and the public."

After considering stakeholder feedback, the FAF Trustees made the following decisions: