PCC’s Decision on Intangible Assets Delayed Again
Failing to agree on how private companies report intangible assets when purchasing or joining another company, the Financial Accounting Standards Board’s (“FASB”) Private Company Council (“PCC”) once again could not come to terms with Proposed Accounting Standards Update No. PCC-13-01A, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination. During its April 29th meeting, the PCC further discussed the proposal that would give private companies relief from determining the value of hard-to-price assets such as customer lists or noncompete agreements. However, similar to its January discussion, the PCC couldn’t come to terms on writing the exemptions.
In the meantime, PCC Chairman Billy Atkinson has requested the FASB’s research staff to review the issue with investors and businesses. As a starting point, Atkinson and FASB members hope to benefit from an upcoming town hall-style meeting in Seattle, Washington. Various private company accountants, investors and lenders are expected to be in attendance.