Private Company Council Meeting Recap
December 11, 2018
The Private Company Council (PCC)
met on Tuesday, December 11, 2018. Below is a brief summary of issues
addressed by the PCC at the meeting, categorized by project:
- Disclosures by Business Entities about Government Assistance:
PCC members provided feedback on the scope of the project and the types
of government assistance that would require disclosure under this
standard. PCC members were generally split on their view of the project,
with users expressing strong support and some preparers and auditors
questioning whether the expected benefits would justify the costs. The
PCC suggested that the FASB initiate educational initiatives to ensure
private company stakeholders are aware of the new requirements,
particularly the type of assistance included in the scope.
- Goodwill and Certain Identifiable Intangible Assets:
PCC members were supportive of the FASB's Invitation to Comment and
noted that future amendments should align future amendments should align
with the alternatives afforded private companies today with respect to
- Distinguishing Liabilities from Equity:
Given the narrow scope of the project, PCC members were very supportive
of adding a probability threshold to the indexation component of the
derivative scope exception.
- Disclosure Improvements in Response to SEC Release on Disclosure Update and Simplification:
PCC members discussed the recently-added FASB research project. Some
disclosures received broad support from PCC members, while other
potential disclosures were not widely supported—primarily due to
concerns over relevance of these disclosures to private company users.
- Codification Improvements—Share-Based Consideration Payable to a Customer:
PCC members unanimously supported the tentative Board decisions reached
on the share-based consideration payable to a customer project.
- Practical Expedient to Measure Grant-Date Fair Value of Equity-Classified Share-Based Payments:
The PCC added a project to its Technical Agenda to consider a practical
expedient to measure grant-date fair value of equity share-based
payments for private companies. PCC members and Board members discussed a
possible approach. PCC members directed FASB staff to conduct further
research in advance of the next meeting on the operability and
understandability of a potential expedient that would allow a private
company to use the strike price (as the input for fair value) of the
underlying share when measuring grant-date fair value of an
The next PCC meeting will be held on Tuesday, April 2, 2019, in Norwalk, CT.
PCC Meeting Recaps are provided for
those interested in following the activities of the PCC. Official
positions of the PCC and the FASB are reached only after extensive due
process & deliberations. More details on the PCC's input on the
FASB's projects can be found within the meeting minutes, which will be
published on the PCC website in the coming weeks.