Private companies are subject to several frameworks for financial reporting purposes. In this article, Mark Zyla explains the role of the Private Company Council (PCC) and provides a summary of several recommendations the PCC has made to the FASB regarding accounting for goodwill and business combinations.
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FASB has voted to endorse a GAAP alternative to exempt private company lessees from a requirement to consolidate variable interest entities (VIE) in common control leasing arrangements. Initiated by the Private Company Council (PCC), the exemption would be allowed under specific conditions including: Private company lessee and the lessor entity are under common control Private company holds a leasing arrangement with the lessor entity All activity between entities is substantially related to the leasing activity between the lessor and private company Obligations of the lessor that are being guaranteed or collateralized by the private company could, at the inception of…
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If you’re interested in keeping up on regulatory news in a day-to-day fashion, Financial Executives International (FEI) publishes a great news page on its own site and offers content for the FEI Financial Reporting Blog at AccountingWeb. Both sites offer multiple monthly highlights from SEC, PCAOB, FASB, IASB, and other regulatory news, including reporting under Sarbanes-Oxley Sect 404. The FEI Financial Reporting Blog is written by Edith Orenstein, Director of Technical Policy Analysis at FEI. Here are some headlines from happenings the past few weeks, with links to fuller articles: FASB Defines Nonpublic Entity (Private Company) During its past two board meetings, the FASB has reached tentative…