PCC proposes alternatives to US GAAP for private companies
08 May 2013
The Private Company Council (PCC) has voted to approve proposed alternatives to improve financial reporting for private companies within US Generally Accepted Accounting Principles (GAAP). This is the first step in the process towards endorsement by the FASB.
The proposals approved by the PCC for the FASB consideration include:
Relief from separately recognizing certain intangible assets acquired in a business combination
Allowing for the amortization of goodwill and a simplified goodwill impairment model
Allowing two simpler approaches to accounting for certain types of interest rate swaps when a private company intends to economically convert the interest rate on its debt.
The next step in the process is for the FASB to vote whether to expose the proposals for public comment.
A press release is available on the FASB website. For more information on the PCC, see our IAS Plus story.
