FASB: PCC votes to expose proposed alternatives within US GAAP for private companies
07 May 2013
The PCC voted to move forward with proposed alternatives within US GAAP designed to improve financial reporting for private companies. The PCC's approved exposure of the proposals is the first step in a process toward endorsement by the FASB.
In its third public meeting, the PCC made tentative decisions in the following areas, including:
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Relief from separately recognising certain intangible assets acquired in a business combination
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Allowing for the amortisation of goodwill and a simplified goodwill impairment model
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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.
“Today the PCC took action on issues of critical importance to private companies, representing an important milestone in our joint efforts with the FASB to improve financial reporting in the areas of intangible assets, goodwill and interest rate swaps”, stated PCC Chairman Billy M Atkinson. “The robust discussion and collaboration between the PCC and the FASB made this first step toward improvement possible.”
Press release
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