FASB issues three PCC proposals
01 Jul 2013
The Financial Accounting Standards Board (FASB) has issued three proposals that intend to improve financial reporting for private companies within US Generally Accept Accounting Principles (GAAP). The three proposals provide guidance on accounting for intangible assets acquired in business combinations, goodwill, and certain types of interest rate swaps for private companies.
On 10 June 2013, the FASB voted to endorse the three alternatives to US GAAP proposed by the Private Company Council (PCC). The first proposal would modify the requirement for private companies to separately recognise fewer intangible assets acquired in a business combination. The next proposal would permit amortisation of goodwill and a simplified goodwill impairment model. Lastly, the third proposal provides an option to use two simpler approaches when converting variable-rate borrowing to a fixed-rate borrowing.
Comments on the proposals are due by 23 August 2013.
Click for (links to FASB website):
- Press release
- FASB in Focus
- The three proposals:
- Proposed Accounting Standards Update — Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination (a proposal of the Private Company Council)
- Proposed Accounting Standards Update — Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill (a proposal of the Private Company Council)
- Proposed Accounting Standards Update — Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps (a proposal of the Private Company Council)
