The Financial Accounting Foundation has issued its final report on establishing a new Private Company Council that will have the ability to recommend changes in accounting standards for privately held companies.

The FAF voted last week to establish the new council to replace the Private Company Financial Reporting Committee (see New Private Company Standards Council Established). An earlier proposal last October to establish for a Private Company Standards Improvement Council underwent considerable changes in response to thousands of comments from the American Institute of CPAs, the Institute of Management Accountants, state CPA societies, and other accountants and accounting organizations pushing for greater independence for the new council from the Financial Accounting Standards Board.

The FAF issued its final report Wednesday spelling out the details on the new council. The report, which is now available at the FAF’s Web site, includes an executive summary and sections devoted to topics such as background and key events for standard setting for private companies, key discussion issues considered by the FAF trustees in deciding on the structure of the new board, and responsibilities and operating procedures of the PCC.

The report also contains summaries of the comment letters received on the original October 2011 proposal to create the Council, along with summaries of FAF private company roundtables held from January through March 2012 in Atlanta, Ga.; Fort Worth, Texas; Palo Alto, Calif.; and Boston, Mass.

The FAF Board of Trustees plans to issue a call for nominations for the PCC chair and members via the FAF Web site on Friday, June 1. For more information, visit www.accountingfoundation.org.