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FASB issues PCC proposal on alternative consolidation requirements for private companies

  • FASB (US Financial Accounting Standards Board) (lt blue) Image

23 Aug 2013

The Financial Accounting Standards Board (FASB) has issued a proposal that intends to improve financial reporting for private companies within US Generally Accepted Accounting Principles (GAAP). The proposal would give private companies the option not to apply the variable interest entity (VIE) guidance in ASC 810 to certain interests in entities under common control.

On 8 August 2013, the FASB voted to endorse the alternative to US GAAP proposed by the Private Company Council (PCC). According to the proposal, a private company would not be required to apply the variable interest guidance if certain conditions are met. However, the proposal would require private companies that elect this option to disclose additional information.

Comments on the proposal are due by 14 October 2013.

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