This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

PCC finalizes its interest rate swap and goodwill proposals

  • PCC meeting Image

Oct 02, 2013

At its recent meeting, the Private Company Council (PCC) voted to finalize two proposals: one related to accounting for interest rate swaps and another related to goodwill in a business combination for private companies. The proposals will need the FASB’s endorsement before they can be issued as final Accounting Standard Updates.

The first proposal, Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps (PCC Issue No. 13-03), would give private companies other than financial institutions the option to use a simplified hedge accounting approach for certain types of interest rate swaps.

The second proposal, Accounting for Goodwill Subsequent to a Business Combination (PCC Issue No. 13-01B), (1) provides an alternative method of accounting for goodwill that would permit an entity to amortize goodwill, (2) requires a test for impairment only upon the occurrence of a triggering event, and (3) simplifies how the impairment test is performed.

The FASB will discuss these proposals and consider their applicability to public entities and not-for-profit organizations in the coming weeks.

The PCC also directed the FASB staff to conduct additional research on its proposal, Accounting for Identifiable Intangible Assets in a Business Combination (PCC Issue No. 13-01A).

For more information on the PCC meeting, please see:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.