PCC Slams Income Tax Disclosure Plan
At its December 4th meeting, the Private Company Council (“PCC”) criticized the Financial Accounting Standards Board’s (“FASB”) proposal to add effective disclosures to Accounting Standards Codification 740-10-50, Income Taxes. The plan would require additional details about income taxes to be disclosed in the footnotes of a company’s financial statements. Members of the FASB’s advisory group, however, said that the extra details would be a burden on private companies and worthless to most financial statement users. In particular, PCC members slammed the requirement for companies to disclose the reconciliation of its effective tax rate and statutory rate. While U.S. GAAP requires public companies to. Read More.
Accounting for PCC Issue on Identifiable Intangible Assets Finalized
Announced by the Private Company Council (“PCC”), the accounting for identifiable intangible assets in PCC Issue No. 13-01A, “Accounting for Identifiable Intangible Assets in a Business Combination” has been finalized. In preparation for endorsement by the Financial Accounting Standards Board (“FASB”), a final Accounting Standards Update (ASU) is being prepared. The ASU will feature amendments stating an entity would not identify non-competition agreements, and customer-related intangible assets not able to be sold or licensed separately from other assets in a business combination. Once endorsed, the amendments would go into effect for business combinations agreed upon in the first annual period. Read More.
PCC Orders FASB to Conduct Further Pre-Agenda Research
After reviewing various projects the Financial Accounting Standards Board’s (“FASB”) has been working on, the Private Company Council (“PCC”) recently ordered the FASB staff to perform additional research to be discussed at a later meeting. At its Tuesday meeting, the PCC continued talks on an alternative accounting for recognizable intangible assets in a business combination however, no decisions were made. In addition, the group discussed the accounting for certain partnership transactions, and shared stakeholder involvement with the FASB regarding stock-based compensation. Other topics covered from the meeting included FASB’s financial instruments impairment accounting efforts, Emerging Issues Task Force Issue No.. Read More.