New Private Company Council to Identify and Vote on Differences in U.S. GAAP for Private Companies

In an effort to improve the standard-setting process for private companies, the Financial Accounting Foundation voted to create a Private Company Council (PCC) to identity differences in U.S. GAAP for private companies. The PCC will determine which elements of existing GAAP to consider for possible exceptions or modifications.  If the modification is approved by FASB it will then be exposed for public comment. Following this process, the exception or modification will be deliberated once again and the final decision will be sent on to the FASB to be added into U.S. GAAP.  The AICPA has expressed full support for this transition and believes it is a step in the right direction.

For the complete article, please visit the Journal of Accountancy.