Financial Accounting Foundation Establishes New Council to Set Accounting Standards for Private Companies | Practical Law

Financial Accounting Foundation Establishes New Council to Set Accounting Standards for Private Companies | Practical Law

The Financial Accounting Foundation (FAF) announced the creation of the Private Company Council (PCC), a new body designed to improve the process of setting accounting standards for private companies.

Financial Accounting Foundation Establishes New Council to Set Accounting Standards for Private Companies

by PLC Corporate & Securities
Published on 24 May 2012 • USA (National/Federal)
The Financial Accounting Foundation (FAF) announced the creation of the Private Company Council (PCC), a new body designed to improve the process of setting accounting standards for private companies.
On May 23, 2012, the Financial Accounting Foundation announced the creation of the Private Company Council (PCC), a new body designed to improve the process of setting accounting standards for private companies. The PCC will have two primary responsibilities:
  • Based on criteria developed and agreed to with FASB, it will determine whether exceptions or modifications to existing US GAAP are necessary to address the needs of users of private company financial statements. It will then identify, deliberate and vote on any proposed changes, which will be subject to endorsement by FASB and submitted for public comment before being incorporated into GAAP.
  • It will serve as the main advisory body to FASB on the appropriate treatment for private companies for items under active consideration on FASB's technical agenda.