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“FAF seeks ways to improve Private Company Council effectiveness.”

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TLDR:

  • Financial Accounting Foundation is reviewing the effectiveness of the Private Company Council (PCC)
  • The PCC advises the Financial Accounting Standards Board on private company matters

Key Elements of the Article:

The Financial Accounting Foundation is conducting an effectiveness review of the Private Company Council (PCC), a panel that advises the Financial Accounting Standards Board (FASB) on private company matters. The PCC was formed in 2012 and uses the Private Company Decision-Making Framework to provide advice to the FASB on the appropriate accounting treatment for private companies. The PCC also offers alternatives within Generally Accepted Accounting Principles (GAAP) to address the needs of users of private company financial statements. Proposals for changes to GAAP must be endorsed by the FASB. Stakeholders are invited to provide feedback on the effectiveness of the PCC in proposing alternatives within GAAP and providing private company perspectives to the FASB. Comments can be submitted until May 31st. FAF trustees are seeking input to enhance the effectiveness of the PCC in fulfilling its mission.

FAF trustee Tim Ryan from PwC and trustee Manju Ganeriwala emphasize the importance of stakeholder feedback in the review process. The review is part of the FAF’s periodic assessments of the PCC, with the last review taking place in 2015. The current review aims to gather insights on how the PCC can be more effective in serving the needs of private companies and users of their financial statements. The overall goal is to improve the advisory role of the PCC to the FASB and ensure that GAAP meets the requirements of private companies.


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