New Private Company Council Members Announced
Yesterday, the Financial Accounting Foundation’s (“FAF”) Board of Trustees appointed the following new members to the Private Company Council : Beth van Bladel, director of CFO for Hire LLC David Hirsch, vice president—finance at Pritzker Group Private Capital Richard Reisig, shareholder and technical director–attest services at Anderson ZurMuehlen & Company, P.C. Yan Zhang, partner at EisnerAmper LLP The newly appointed members will serve three-year terms effective January 1, 2017. Additionally, the FAF’s Board of Trustees reappointed Russell Golden as chairman of Financial Accounting Standards Board (“FASB”). Golden has been with the FASB since 2010, guiding the board in the issuance of major accounting standards regarding revenue recognition, leases, credit losses, and nonprofit financial reporting.. Read More.
FASB Declines Request for More Relief from Hedge Accounting Requirements
The Financial Accounting Standards Board (“FASB”) has turned down the Private Company Council’s (“PCC”) request for additional exemptions from its upcoming hedge accounting proposal. Decided on December 21st, the FASB said the PCC’s request for more relief from the proposal’s documentation requirements to justify their qualifications for specialized hedge accounting had little merit. The standard setter has already decided to simplify some of the documentation requirements. The FASB plans to publish its hedge accounting proposal in the first quarter of 2016.
U.S. GAAP Update to Offer Accounting Alternative for Private Companies
Last month, the Financial Accounting Standard Board (“FASB”) approved a proposal that would offer private companies an easier method to adopt special accounting alternatives from U.S. GAAP. Scheduled to be published in early 2016, the proposal is in response to the Private Company Council’s (“PCC”) calls for accounting changes. In September, the FASB issued Proposed Accounting Standards Update No. PCC-15-01, Intangibles—Goodwill and Other (Topic 350): Business Combinations (Topic 805): Consolidation (Topic 810): Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance — a Proposal of the Private Company Council. The proposal eliminates the effective dates for the following accounting. Read More.
Topics: Accounting Standards Update "ASU", Business Combinations (Topic 805), Derivatives and Hedging (Topic 815), Financial Accounting Standards Board "FASB", Private Company Council "PCC", U.S. GAAP
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.