Highlights from the Private Company Council’s Tuesday Meeting
The following is a recap of Financial Accounting Standards Board (“FASB”) projects discussed at Tuesday’s Private Company Council (“PCC”) meeting:
- Disclosure Framework. Numerous PCC members expressed support for the project, particularly the inventory exposure draft. The PCC also provided feedback on various portions of the project.
- Financial instruments—Hedge Accounting. Many PCC members favor the standard, including guidance to give private companies additional time to disclose hedge effectiveness.
- Liabilities and Equity—Targeted Improvements. Feedback received on the Exposure Draft was discussed, as well as the FASB’s research on an alternative to help streamline financial instruments accounting with “down round” features. The FASB was encouraged to consider stakeholder feedback to determine the project’s next steps.
- Consolidation Targeted Improvements to Related Party Guidance for Variable Interest Entities . The FASB’s latest tentative decisions on the project were discussed. PCC members were satisfied with the project’s general direction.
- FASB Pre-Agenda Project on Cloud Computing. PCC members offered the FASB private company examples for identifying and assessing cloud computing services, contracts, and expenses.
The PCC’s next meeting is scheduled for Tuesday, July 11.
Topics: Cloud Computing, FASB, FASB Disclosure Framework Project, Financial Accounting Standards Board "FASB", Hedge Accounting, liabilities and equity, Private Company Council "PCC", Variable Interest Entity "VIE"