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Private Company Financial Reporting Resource Center


RubinBrown works hard to stay on top of the ever-changing regulatory environment. To assist our clients and contacts, we have compiled a list of resources below that will be continuously updated to keep you informed about relevant technical accounting matters impacting private companies.

  

  

  


FASB Private Company Council

The Private Company Council (PCC) and the Financial Accounting Standards Board (FASB) work jointly to set criteria to decide whether and when alternatives within U.S. Generally Accepted Accounting Principles (GAAP) are warranted for private companies. Based on those criteria, the PCC will review and propose alternatives within U.S. GAAP to address the needs of users of private company financial statements.

The PCC also serves as the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB's technical agenda.

AICPA Financial Reporting Framework for Small- and Medium-Sized Entities

The Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs™) is designed for America's small business community. It delivers financial statements that provide useful, relevant information in a simplified, consistent, cost-effective way. The FRF for SMEs™ framework may be used when GAAP financial statements are not required.

FASB Removes Effective Dates And Preferability Assessment For Private Company Guidance


The FASB has issued ASU 2016-03 which eliminates the effective dates and allows a private company to forgo a preferability assessment the first time it elects any of the following four private company accounting alternatives. 

04/14/2015

RubinBrown Leader Quoted in Journal of Accountancy Article On Private Company Financial Reporting


RubinBrown's Director of Quality of Control David Duckwitz provides insights into private company financial reporting in a recent article that appeared in the Journal of Accountancy.

FAF Seeks Comments On PCC


The Board of Trustees of the Financial Accounting Foundation (FAF) is conducting a review of the Private Company Council (PCC) to determine whether, after three years of existence, the PCC is meeting its primary responsibilities and fulfilling its mission.

Private Company Council Meeting Recap


At its most recent meeting on February 13, 2015, the Private Company Council (PCC) continued its work on certain financial reporting issues. Following is a brief summary of items addressed by the PCC at that meeting.

12/29/2014

Focus on Private Company Financial Reporting: FASB Issues Accounting Standards Update for Private Companies


The Financial Accounting Standards Board (FASB) has issued an update to U.S. Generally Accepted Accounting Principles that provides an alternative for private companies on accounting for intangible assets acquired in a business combination.

11/03/2014

Private Company Council Reaches Final Consensus Related To Intangible Assets Acquired In A Business Combination


The Private Company Council has voted to send an accounting alternative that would simplify the accounting for intangible assets acquired in a business combination to the Financial Accounting Standards Board (FASB) for endorsement. 

03/31/2014

FASB Issues Accounting Standards Update For Private Companies


The Financial Accounting Standards Board (FASB) has issued an update to U.S. Generally Accepted Accounting Principles (GAAP) intended to improve private company financial reporting regarding consolidation of lessors in certain common control leasing arrangements. 

01/17/2014

Focus on Private Company Financial Reporting: FASB Issues Accounting Standards Updates For Private Companies


On January 16, 2014, the Financial Accounting Standards Board (FASB) issued two updates to U.S. Generally Accepted Accounting Principles that provide alternatives for private companies on accounting for goodwill and interest rate swaps. Both of these Accounting Standards Updates had been proposed by the Private Company Council and subsequently endorsed by the FASB.

01/13/2014

Focus on Private Company Financial Reporting: FASB And PCC Issue Private Company Framework


As part of their ongoing commitment to consider the needs of users and preparers of private company financial statements, the Financial Accounting Standards Board (FASB) and the Private Company Council (PCC) have issued the Private Company Decision-Making Framework (Guide). Such a framework was a recommendation of the Blue-Ribbon Panel on Standard Setting for Private Companies in January 2011. As part of the process of establishing the PCC, the Financial Accounting Foundation had determined that one of the responsibilities of the PCC would be to develop, jointly with the FASB, criteria for determining whether and in what circumstances alternatives within U.S. generally accepted accounting principles (GAAP) are warranted for private companies.

12/23/2013

FASB and PCC Finalize Private Company Decision-Making Framework


As reported by Accounting Today, the Financial Accounting Standards Board and the Private Company Council have issued the final version of their Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies to help FASB and the PCC determine whether and when to provide alternative recognition, measurement, disclosure, display, effective date or transition guidance for private companies reporting under U.S. GAAP.

Click here to read the article.

10/16/2013

Focus on Private Company Financial Reporting: Private Company Council Votes to Finalize Two Private Company Standards


The Private Company Council (PCC) has voted to finalize two alternatives within U.S. Generally Accepted Accounting Principles (GAAP) for private companies related to accounting for interest rate swaps and, separately, accounting for goodwill in a business combination.

09/03/2013

FASB Issues Exposure Draft Related To PCC Proposal Regarding Consolidation Of Certain Variable Interest Entities


The Financial Accounting Standards Board (FASB) has issued an Exposure Draft related to Private Company Council (PCC) Issue No. 13-02, Applying Variable Interest Entity Guidance to Common Control Leasing Arrangements

08/01/2013

FASB Issues Exposure Drafts Related To Three Private Company Council Proposals


The Financial Accounting Standards Board (FASB) has issued for public comment three Exposure Drafts that address private company stakeholder concerns raised about the relevance and complexity of certain aspects of U.S. generally accepted accounting principles (GAAP).

As reported in the July 2013 Accounting & Auditing Alert, these Private Company Council (PCC) proposals had been previously endorsed by the FASB.

07/01/2013

FASB Endorses PCC Proposals


The Financial Accounting Standards Board (FASB) has endorsed the following three consensuses-for-exposure reached at the May 7, 2013, Private Company Council (PCC) meeting:

  • PCC Issue No. 13-01A, "Accounting for Identifiable Intangible Assets in a Business Combination";
  • PCC Issue No. 13-01B, "Accounting for Goodwill Subsequent to a Business Combination"; and
  • PCC Issue No. 13-03, "Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps."


These endorsements allow the proposals to be exposed for public comment.

01/02/2013

Private Company Council Holds Initial Meeting


On December 6, 2012, the Private Company Council (PCC), a new body created to improve the standard-setting process for private companies, held its inaugural meeting in Norwalk, Connecticut.

The PCC was established in May 2012 by the Board of Trustees of the Financial Accounting Foundation (FAF) to work with the Financial Accounting Standards Board (FASB) to determine the need for modifications of U.S. Generally Accepted Accounting Principles (GAAP) for private companies.

09/04/2012

FASB Seeks Input On Private Company Financial Statement Decision-Making Framework


The FASB has issued an Invitation to Comment - Private Company Decision-Making Framework—A Framework for Evaluating Financial Accounting and Reporting Guidance for Private Companies seeking input from constituents for consideration by the FASB and the newly established Private Company Council (PCC) in developing a decision-making framework for the financial statements of private companies.

The Discussion Paper is intended to gather input from stakeholders concerning the appropriateness, completeness, and cost effectiveness of the proposed private company framework.

07/02/2012

FAF Issues Final Report On Private Company Council


The Financial Accounting Foundation (FAF) has issued its Final Report on the Establishment of the Private Company Council (PCC)

The final report provides more insight on the roles and responsibilities of the PCC Chair and members, as well as the PCC agenda and process, the voting for exceptions or modifications to existing U.S. GAAP, the PCC role in projects on the Financial Accounting Standards Board (FASB) agenda, and the FASB endorsement process.

06/04/2012

AICPA Supports FAF’s Decision Regarding New Advisory Body


The Financial Accounting Foundation (FAF), the oversight body of the Financial Accounting Standards Board (FASB), has made known its highly-anticipated decision regarding its proposal to create an advisory body to improve the standard setting process for private companies. Subsequent to that announcement, the American Institute of Certified Public Accountants (AICPA) declared its support for the FAF’s decision.

05/23/2012

Focus on Private Company Financial Reporting: FAF Makes Decision Regarding New Advisory Body


The FAF established a new body, the Private Company Council (PCC) which will have two main responsibilities. The PCC will determine whether exceptions or modifications to existing nongovernmental U.S. Generally Accepted Accounting Principles (GAAP) are necessary to address the needs of users of private company financial statements. Any changes proposed by the PCC will be subject to subsequent endorsement by the FASB and submitted for public comment before being incorporated into GAAP. The PCC will also be the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB’s technical agenda.

11/01/2011

The Financial Accounting Foundation Looks to Improve Private Company Standards


The Financial Accounting Foundation (“FAF”) Board of Trustees plans to establish a “Private Company Standards Improvement Council” (“PCSIC”) to improve the standard-setting process for private companies. 

The PCSIC would determine whether exceptions or modifications to nongovernmental Accounting Principles Generally Accepted in the United States of America (“GAAP”) are required to address the needs of users of private company financial statements.

06/01/2011

FASB Chair Addresses Recommendations Related To Standard Setting For Private Companies


At the recent Zicklin Center Financial Reporting Conference at Baruch College in New York, the proposal of a Blue Ribbon Panel on the future of private company accounting standards was addressed by Leslie Seidman, the chairperson of the FASB. 

Based on these comments, it is clear that the FASB hopes that the responsibility for private company financial reporting remains in the FASB's hands.  These comments also indicate that it is clear that the decision about how to respond to the panel's proposal is being deliberated by the Financial Accounting Foundation (FAF), the FASB's parent organization.  The Blue Ribbon Panel was originally commissioned by the FAF to examine standard setting for private companies.

01/28/2011

Focus on Accounting: Blue-Ribbon Panel Issues Report on Standard Setting for Private Companies


On Wednesday, January 26, 2011, the Blue-Ribbon Panel (BRP or Panel) issued a much anticipated report on recommendations to the Financial Accounting Foundation (FAF), the parent organization of the Financial Accounting Standards Board (FASB), regarding the future of accounting standards for private companies i ii.

04/14/2015

RubinBrown Leader Quoted in Journal of Accountancy Article On Private Company Financial Reporting


RubinBrown's Director of Quality of Control David Duckwitz provides insights into private company financial reporting in a recent article that appeared in the Journal of Accountancy.

06/09/2014

Focus on Private Company Financial Reporting:  Relief Is Here


It has been a complaint for nearly four decades.  U.S. GAAP (generally accepted accounting principles) can be overly complicated and, in some circumstances, unnecessary for non-public companies.  

In May, RubinBrown hosted four sold-out seminars on this very topic.  Business owners and executives gathered with us to learn more about new alternatives, from both the FASB and the AICPA, that will help simplify private company financial reporting.

04/16/2014

ABA Banking Journal Publishes Article on FRF For SMEs


The ABA Banking Journal publishes an article on the ways the new accounting framework is a useful tool for lenders.

07/01/2013

AICPA Issues New Financial Statement Framework


The American Institute of Certified Public Accountants (AICPA) has released the Financial Reporting Framework for Small-and Medium-Sized Entities (FRF for SMEs) to help the small business community with its financial reporting needs.

The FRF for SMEs represents a new accounting option for preparing financial statements for privately-held, owner-managed businesses that are not required to use U.S. generally accepted accounting principles (GAAP) for financial reporting purposes.

06/20/2013

Focus On Private Company Financial Reporting: AICPA Issues New Financial Statement Framework


The American Institute of Certified Public Accountants (AICPA) has released the Financial Reporting Framework for Small-and Medium-Sized Entities (FRF for SMEs) to help the small business community with its financial reporting needs. The FRF for SMEs represents a new accounting option for preparing financial statements for privately-held, owner-managed businesses that are not required to use U.S. generally accepted accounting principles (GAAP) for financial reporting purposes.

12/03/2012

AICPA Proposes Financial Statement Framework For Small And Medium-Sized Private Companies


The American Institute of Certified Public Accountants (AICPA) has proposed a special purpose accounting framework for small and medium-sized private companies (referred to as SMEs) that do not require financial statements based on U.S. generally accepted accounting principles (GAAP).

The proposed financial reporting framework (FRF for SMEs) is less complicated than GAAP and is based on the perceived needs of the primary users of the financial statements of SMEs. The proposed FRF is principles based and comprises accounting principles for transactions and events most likely to be encountered by SMEs.