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State Board Report

March 2015

The Private Company Council (PCC), established in May 2012, is approaching the three-year mark when the overall assessment of its operations is to be performed. To assist the Board of Trustees of the Financial Accounting Foundation (FAF) in determining if the PCC is fulfilling its mission, a request for comment from stakeholders has been issued with a comment deadline of May 11, 2015. NASBA will be submitting its comments to the FAF.

FAF Chairman Jeffrey J. Diermeier stated: "Going forward, the PCC will need to balance the demands of its role as an advisory body to the FASB with its responsibility to identify and help resolve private company financial accounting and reporting issues that arise in current GAAP. We are seeking stakeholder input to help determine whether the identified improvements will help the PCC achieve this balance."

Among the possible improvements on which the Trustees are seeking comment are:

  • The PCC should continue to establish working groups for select FASB projects.
  • There should be a mechanism for consistent and continuous feedback on active FASB projects among the PCC members and FASB members and staff.
  • The PCC should continue transitioning to a body that primarily provides input on active FASB agenda projects.

Stakeholders are being asked to comment on whether the PCC has been successful in proposing alternatives within GAAP that address the needs of private company financial statement users. Also, has the PCC been effective as an advisory body to the FASB in the standard-setting process?

PCC members will review the PCC’s accomplishments at NASBA’s June Regional Meetings.

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