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Private Company Council, FASB Members Meet to Discuss Projects

Private Company Council (“PCC”) members gathered Tuesday to discuss the Financial Accounting Standards Board’s (“FASB”) ongoing projects. With FASB staff members also on hand to provide updates, the PCC provided feedback on the following matters:

  • Financial instruments—hedge accounting. During talks on the FASB’s effort to simplify hedge accounting, the PCC asked the FASB to make a decision on whether to offer an exception for private companies when fulfilling their hedge documentation and effectiveness testing requirements.
  • Consolidation reorganization and improvements. Several PCC members still want private companies under common control to be exempt from the variable interest entity guidance under Topic 810. The PCC also wants to hear what stakeholders will have to say on the topic at the December 16 roundtable.
  • Private Company Decision Making Framework. Talks were held to decide whether the PCC’s Decision Making Guide needs to be reviewed for possible improvements. Another discussion on the issue is expected at a later meeting.

Also discussed Tuesday was the Invitation to Comment, Agenda Consultation, which focuses on intangible assets, and the FASB’s project on the definition of a public business.

The PCC’s next meeting is scheduled for Tuesday, April 4, 2017.

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