8 October 2015
To the Point - FASB proposes allowing adoption of PCC alternatives at any time without a preferability assessment
The FASB proposed eliminating the effective dates of the four Private Company Council (PCC) alternatives in US GAAP and allowing private companies to forgo a preferability assessment the first time they adopt each of these alternatives. The proposal also would extend the transition guidance in the alternatives indefinitely. Comments are due by 16 November 2015.
23 July 2015
To the Point - Private companies may get relief on adopting PCC alternatives after their effective dates
The Private Company Council (PCC) added a project to its agenda to address whether private companies should be allowed a one-time election to adopt PCC alternatives after their effective dates without demonstrating preferability and whether the transition guidance for the PCC alternatives on goodwill and interest rate swaps should be extended indefinitely. The PCC asked the FASB staff to perform research on a few other topics and provided feedback on select FASB projects.
11 May 2015
Comment Letter - Three-year review of the private company council
In our comment letter, we reconfirmed our support for providing relief to private companies under US GAAP. We also encouraged the PCC to work closely with the FASB on its projects to simplify accounting for all entities because decreasing complexity for all entities may reduce the need for private company alternatives.
7 May 2015
To the Point - PCC discusses effective date relief for private company alternatives and other topics
The Private Company Council (PCC) discussed whether private companies should be allowed a one-time election to adopt PCC accounting alternatives after their effective dates without having to demonstrate preferability under US GAAP. The PCC also discussed the staff’s pre-agenda research on private company alternatives to the accounting for employee share-based payments and provided input on several FASB projects. The PCC asked the FASB to consider having its staff research application guidance on certain aspects of the variable interest entity model for private companies under common control.
17 February 2015
To the Point - PCC will consider making alternatives easier to adopt
The PCC added a project to its agenda to consider allowing companies to elect the private company accounting alternatives the FASB has provided after their effective dates. The PCC decided that older US GAAP standards should not be amended to incorporate the term public business entity at this time, ending its discussions on this project. In addition, the PCC provided input on certain FASB projects and also discussed a TPA issued by the AICPA on uncertain tax positions disclosures that conflicts with ASU 2009-06.
7 January 2015
To the Point - Private companies can recognize fewer intangible assets acquired in a business combination
The FASB issued final guidance that allows private companies to simplify their accounting by recognizing separately fewer intangible assets in a business combination and certain other transactions. The alternative limits the customer-related intangibles a private company recognizes separately to those that are capable of being sold or licensed independently from the other assets of the business. It also precludes the recognition of noncompetition agreements.
18 December 2014
To the Point - FASB to propose more ways to simplify accounting for employee share-based payments
The FASB tentatively decided to propose two practical expedients that private companies could use to simplify their accounting for share-based payments to employees. For both public and private companies, the Board also tentatively decided to align the classification guidance for put and call rights that are contingent on an event within an employee’s control.
15 December 2014
To the Point - PCC discusses expanding the use of the term public business entity and other projects
The PCC discussed its project on the definition of a public business entity, whether to address partnership accounting and how the FASB could improve shared-based payment accounting for private companies. PCC members asked whether the FASB could expand its use of the term public business entity in US GAAP without changing current practice.
9 October 2014
To the Point - FASB launches project to simplify share-based payment accounting
The FASB added a project to its agenda on the accounting for share-based payments for both public and private entities. At the same meeting, the FASB made tentative decisions on the accounting for an employee’s use of shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures, income taxes when awards vest or are settled and the presentation of excess tax benefits on the statement of cash flows. Our To the Point publication tells you what you need to know about these developments.
18 September 2014
To the Point - PCC wraps up intangible assets and discusses share-based payments
The PCC voted to finalize an alternative that would allow private companies to simplify their accounting for intangible assets acquired in a business combination and sent it to the FASB for endorsement. The PCC decided to provide input for a project the FASB plans to launch on both private and public company accounting for share-based payments. Our To the Point publication tells you what you need to know about the PCC meeting this week.
17 July 2014
To the Point - PCC discusses how to simplify the accounting for intangible assets and other potential projects
The PCC discussed its proposal to simplify the accounting for intangible assets acquired in a business combination but did not reach any decisions. The PCC also asked the FASB staff to research possible PCC projects on partnership accounting and the accounting for share-based payments. Our To the Point publication tells you what you need to know about the PCC meeting this week.
1 May 2014
To the Point - PCC discusses intangible assets and adds a project on defining public and private entities
The Private Company Council (PCC) continued discussing how to simplify the accounting for intangible assets acquired in a business combination and added a project to its agenda to consider whether to change or consolidate the various definitions of public and nonpublic entities that exist in US GAAP. Our To the Point publication tells you what you need to know about the PCC meeting this week.
10 April 2014
Technical Line - Private companies in common control leasing arrangements may be eligible for relief from VIE model
Our Technical Line discusses new guidance from the FASB that provides an exemption for private companies from evaluating lessors in common control leasing arrangements for consolidation under the variable interest entities (VIE) guidance, if they meet certain criteria. Private companies that elect the alternative still need to apply other consolidation guidance and other US GAAP (e.g., lease accounting) to these arrangements and make certain disclosures.
26 November 2013
Technical Line - Considerations for determining whether to elect PCC accounting alternatives
The FASB endorsed the first two accounting alternatives it will provide for private companies under US GAAP. Private companies will likely be able to use them for year-end reporting for 2013. This Technical Line tells you what to consider in determining whether and when to elect these alternatives and others developed by the PCC.
3 October 2013
To the Point - Private Company Council votes to finalize proposals on interest rate swaps and goodwill
The PCC modified its proposals to allow private companies to simplify their accounting for certain interest rate swaps and to amortize goodwill acquired in a business combination and sent them to the FASB for final endorsement. If endorsed by the FASB, the proposals would be the first accounting alternatives approved for private companies under US GAAP, in an effort to reduce cost and complexity for private companies. Our To the Point publication tells you what you need to know about the proposals.
3 July 2013
To the Point - FASB seeks comment on three Private Company Council proposals
The FASB issued proposals that would allow private companies to apply alternatives under US GAAP when accounting for intangible assets in a business combination, goodwill and certain hedges involving interest rate swaps. The alternatives were the first developed by the Private Company Council. Our To the Point publication tells you what you need to know about the proposals.
9 May 2013
To the Point - Private Company Council proposes alternatives under US GAAP
The Private Company Council approved exposure of proposals to allow alternatives that would provide relief for private companies when (1) recognizing intangible assets in business combinations and subsequently measuring goodwill and (2) accounting for certain interest rate swaps. Any alternatives proposed by the Council must be endorsed by the FASB before an exposure draft can be issued. Our To the Point publication summarizes the proposed alternatives.
18 April 2013
To the Point - A revised framework for considering relief to private companies
The Private Company Council (PCC) and the FASB have issued an Invitation to Comment on a revised decision-making framework that they would use to consider whether and when to provide alternatives for private companies under US GAAP. Our To the Point publication summarizes the framework and highlights changes from the initial staff recommendations the FASB sought comment on in July 2012.
11 December 2012
To the Point - Private Company Council holds inaugural meeting
In its initial meeting in December, the Private Company Council asked the FASB staff to research four issues that the Council may consider in its review of whether and when to make accommodations for private companies. Our To the Point publication summarizes those issues and other matters discussed at the meeting.
7 November 2012
To the Point - Proposed non-GAAP framework could make reporting easier for SMEs
The AICPA is requesting comments on a proposed financial reporting framework for small- and medium-sized privately held entities that are not required to use US GAAP. The proposed framework is intended to be less complicated and less costly to apply than US GAAP. Our To the Point publication provides a brief overview of the framework.
20 September 2012
To the Point - Private companies in the spotlight
Standard setters, regulators and lawmakers are focusing on how to reduce financial reporting burdens and promote capital formation for private companies. Our To the Point highlights accounting, auditing and regulatory initiatives and other projects focused on private company financial reporting.
9 August 2012
To the Point - Private companies - a framework for consideration
The FASB issued an Invitation to Comment on its staff's initial recommendations for a private company decision-making framework that would help the FASB and the new Private Company Council decide whether and when to change US GAAP financial reporting requirements for private companies. Our To the Point publication summarizes the approach described in the discussion paper.
14 June 2012
To the Point - Spotlight on private company standard setting
Improving the standard-setting process for private companies has become an area of focus on several fronts for the Financial Accounting Foundation and the Financial Accounting Standards Board. The creation of a Private Company Council and projects to develop a private company decision-making framework and to better define a nonpublic entity, reaffirm a strong commitment to private company stakeholders. Our To the Point highlights these initiatives.