FASB issues three PCC proposals

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

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.

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