Writing that the Financial Accounting Foundation (FAF) has expended great energy and resources “to rightly have the entire organization become more attuned to the private company financial reporting constituency,” the American Institute of CPAs (AICPA) has expressed the hope that certain process changes and other matters will not weaken the Private Company Council (PCC) and the private company initiative, or the FAF and Financial Accounting Standards Board’s (FASB) commitment to this effort.
FAF’s Board of Trustees is conducting an overall assessment of the PCC to: determine whether the PCC is meeting its primary responsibilities and mission; provide an assessment of the PCC’s continuing role and effectiveness; and address changes that might be made to improve its effectiveness.
In a May 8 letter to FAF’s Board of Trustees that was signed by AICPA Chair Tommye Barie, CPA and President and CEO Barry Melancon, CPA, CGMA, the Institute applauded the spirit, commitment and dedication demonstrated by the FAF, the FASB Board, the PCC and the FASB staff. “The combined efforts to date have shown that all parties involved have been listening to the private company constituencies,” they wrote. “Regardless of how many constituents take the time to write a letter to FAF, we can assure the FAF, based on our vast contacts with private companies and their public accounting firms, that the FASB/PCC output has been extremely well received and appreciated, and these same constituents look forward to continued momentum in aggressively addressing private company issues.”
The PCC has two principal responsibilities. One is to work jointly with the FASB on a set of criteria to decide whether and when alternatives within U.S. GAAP are warranted for private companies. The other is to serve as the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB’s technical agenda.