Private company reporting

Private company VIE exception approved by PCC

A GAAP exception approved Tuesday by the Private Company Council (PCC) would exempt private companies from applying consolidation guidance for variable-interest entities (VIEs) under common-control leasing arrangements. Some changes were made from the original proposal, as the PCC struggled with concerns over the definition of “common control” and other issues.

Private company initiatives making progress

David Morgan, CPA/PFS, said members of the Tennessee Bankers Association seemed pleased earlier this fall after he gave a presentation about the features of the AICPA’s Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs). “Once … it was explained to them, that it was a good alternative,

PCC to ask FASB to endorse first private company GAAP exceptions

The Private Company Council (PCC) on Tuesday approved its first GAAP exceptions for private companies and will forward them to FASB for final endorsement. If FASB endorses the exceptions, they will be written into GAAP. These would be the first GAAP exceptions approved by the PCC, which was formed last

New option a game changer for private companies

Main Street businesses now have a new option for non-GAAP financial reporting. The AICPA Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs) was created to answer demands of CPAs, small business owners and managers, and their bankers and other stakeholders. The accounting framework is designed to offer:

Which accounting framework should a private company use?

Multiple options for private company financial reporting have emerged this year as standard setters, the AICPA, and other organizations have sought to reduce complexity and costs for small business owners. A new tool developed by the AICPA provides guidelines to help privately held businesses determine which accounting framework best meets

FASB proposes VIE alternative for private companies

FASB on Thursday formally issued for public comment a proposal that would exempt many private companies from the requirement to apply variable-interest entity (VIE) consolidation guidance to lessor companies under common control. The proposal, which was originally advanced by the Private Company Council (PCC), would create an alternative within U.S.

FASB to propose relief for private companies from VIE requirements

FASB moved closer Wednesday to providing relief for private companies from variable-interest entity (VIE) consolidation requirements for common control leasing arrangements, which are considered costly and irrelevant by many small business owners. The board voted to endorse a decision by the Private Company Council (PCC) to propose an alternative for

NFPs excluded from FASB’s proposed definition of a public business entity

FASB would not consider not-for-profits (NFPs) and employee benefit plans public business entities for purposes of future standard setting, according to a new proposal the board exposed for public comment Wednesday. FASB is defining a public business entity to prevent confusion over which entities can apply the alternatives within GAAP

PCC proposing VIE consolidation exception for private company leases

The Private Company Council (PCC) voted Tuesday to propose a GAAP alternative for private companies for applying consolidation guidance for leasing entities under common control. Private companies would be exempt from applying consolidation guidance for variable-interest entities (VIEs) under common control leasing arrangements under the proposal the PCC voted to

FASB proposes GAAP changes for private companies on 3 issues

FASB on Monday formally proposed changes to GAAP for private companies that are designed to make financial reporting less burdensome for private companies on three issues. The proposals were crafted by the Private Company Council (PCC), which was created last year to propose alternatives for private companies within U.S. GAAP.

FASB agrees to advance three private company alternatives for public comment

The march toward possible exceptions and modifications to U.S. GAAP for private companies continued Monday when FASB voted to issue three Private Company Council (PCC) initiatives for public exposure. FASB expects to issue the exposure drafts later this month. After the exposure period, the PCC will review comments of stakeholders

AICPA unveils framework designed for streamlined reporting

The AICPA on Monday launched the Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs), a new option for small business financial reporting. Designed to help smaller, privately held, owner-managed businesses, the FRF for SMEs accounting option is intended for businesses that do not need to prepare GAAP-compliant

PCC makes progress toward 3 key private company exceptions

The Private Company Council (PCC) made progress Tuesday toward creating its first GAAP exceptions and modifications for private companies. PCC members voted to issue an exposure draft seeking public comment on proposed alternatives to GAAP designed to improve financial reporting for private companies. A simple majority of FASB members must

New FASB proposal would increase private companies’ options

Private companies would be able to choose and use only the GAAP exceptions or modifications that make sense for them in their financial reporting under a new proposal released Monday by FASB. FASB and the Private Company Council (PCC) issued an Invitation to Comment on the private company decision-making framework.

Three issues take next step in PCC’s private company modification process

The Private Company Council (PCC) is forging ahead with more in-depth analysis of three of the four issues it initially identified as candidates for possible GAAP exceptions or modifications for private companies. On Tuesday, during the newly created PCC’s second meeting, the council added the three items to its agenda

Private Company Council has VIEs on radar

Variable-interest entities (VIEs), which have long been identified as one of the most frustrating concepts in accounting for private companies, were among the four issues the new Private Company Council (PCC) identified for further study and possible agenda consideration during its initial meeting Dec. 6 in Norwalk, Conn. The PCC

VIEs among first issues PCC identifies for discussion

Variable-interest entities (VIEs), which have long been identified as one of the most frustrating concepts in accounting for private companies, were among the four issues the new Private Company Council (PCC) identified for further study in its initial meeting Thursday in Norwalk, Conn. The PCC was created by FASB’s parent

All eyes on standards as PCC holds first meeting

After decades of deliberation on the process for deciding accounting standards for private companies, the standards themselves are about to be reviewed by a new council. The new Private Company Council (PCC) created by the Financial Accounting Foundation (FAF) will meet for the first time Thursday in Norwalk, Conn. The

News highlights for December 2012

The first item of business for the Private Company Council (PCC), which will be chaired by Billy Atkinson, will be working with FASB to continue developing a framework for making decisions about whether and when U.S. GAAP should be modified for private companies. The PCC—created by the Financial Accounting Foundation

Framework for SMEs emphasizes relevance, historical costs

As David Morgan revealed some of the specific principles that will be contained in the proposed Financial Reporting Framework for Small and Medium-Sized Entities, one common theme emerged. “We don’t get into a lot of things that we don’t consider relevant,” Morgan told the audience Monday at the AICPA fall

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How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.