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FASB and the Private Company Council Continue Moving Towards Private Company GAAP


As discussed at the link below, the FASB issued an alert on 2/12/2013 that the FASB will again seek public input on the potential accounting framework for privately held companies.  As more private companies struggle to apply guidance that was designed for publicly traded entities, there is continuous momentum behind a push for a separate set of standards for closely-held businesses.  Along those lines, the FASB and the PCC continue to carve-out the issues that are onerous for private companies, such as consolidation of variable interest entities, interest rate swaps, and intangible assets.  There also appears to be discussions of revenue recognition divergence between the private company framework and existing GAAP.  This is potentially good news if the proposed recognition standard has as sweeping of an impact upon the construction industry as is currently anticipated.

The proposed framework will be re-exposed for public comment in March, and will allow for a 90-day comment period.

http://www.fasb.org/cs/ContentServer?c=FASBContent_C&pagename=FASB%2FFASBContent_C%2FNewsPage&cid=1176160955068