Private Company Council Adds Three Projects to Its Agenda, Votes to Seek More Input on Private Company Decision-Making Framework

Norwalk, CT, February 12, 2013—The Private Company Council (PCC) today added three projects to its formal agenda and voted, along with the Financial Accounting Standards Board (FASB), to seek additional public comment on the FASB´s staff paper on a proposed private company decision-making framework.

In its second public meeting, the PCC voted to add the following items to its agenda:

In their first joint standard-setting activity, the PCC and the FASB voted to seek additional public input on a proposed private company decision-making framework. The framework outlines criteria to determine whether and in what circumstances it is appropriate to adjust financial reporting requirements for private companies following U.S. Generally Accepted Accounting Principles (GAAP).

The decision-making framework is intended to help the PCC and the FASB identify opportunities to enhance the relevance to users and reduce the cost and complexity of preparing private company financial statements in accordance with U.S. GAAP. The proposal is expected to be re-exposed in March, with a 90-day comment period.

"Today, the PCC made significant progress in its effort to improve financial reporting for private companies by adding three projects to the agenda, moving forward to re-expose the proposal on the private company decision-making framework, and seeking new research on stock-based compensation and development stage enterprises," said PCC Chairman Billy M. Atkinson.

The PCC also directed the FASB staff to develop agenda research memoranda on two additional topics: Stock-based compensation and development stage enterprises. The PCC directed the staff to continue research on interest rate swaps with more than one counterparty or lending arrangement. The PCC did not formally add to its agenda accounting for uncertain tax positions (as referenced in ASC Topic 740, income tax, formerly FIN 48). Members did not identify specific practice issues that require immediate attention. Members acknowledged the desire to continue to solicit feedback from stakeholders on this issue.

The PCC also continued its discussion of the FASB´s project on definition of a nonpublic entity and provided input to the FASB on other projects, including going concern, revenue recognition, and the Emerging Issues Task Force´s project on recognition of new accounting basis (pushdown) in certain circumstances.

All PCC meetings will be archived on the FAF website.

The PCC was established by the FAF Board of Trustees of to work with the FASB to determine whether and when to modify U.S. Generally Accepted Accounting Principles (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.