The Financial Accounting Foundation has issued a request for nominations for candidates to serve on its newly created Private Company Council.

The deadline to submit nominees for PCC members and the PCC chair is June 30, 2012. The FAF recently voted to establish the PCC as a successor to the Private Company Financial Reporting Committee (see New Private Company Standards Council Established).

The PCC is tasked with improving the process of setting accounting standards for private companies. The council will determine whether modifications or exceptions to existing nongovernmental U.S. GAAP are required to address the needs of users of private company financial statements, based on criteria mutually agreed to by the PCC and the Financial Accounting Standards Board. Before being incorporated into U.S. GAAP, PCC recommendations will be subject to a FASB endorsement process. The PCC also will 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.

The PCC membership will comprise individuals with backgrounds and experience in using, preparing, and auditing private company financial statements, including:

• Users of private company financial statements, including bank lenders, equity investors, and/or sureties
• Preparers of private company financial statements from a variety of industries and companies of various sizes, and
• CPA practitioners from national, regional, and local firms.

Members of the PCC will be appointed to a three-year term, with the potential to be reappointed for an additional term of two years. The chair of the PCC will be appointed for such term as the FAF Board of Trustees determines necessary to achieve the objectives of the PCC and allow for an effective transition and continuity of the chair’s role. The PCC chair and members will serve without remuneration, but will be reimbursed for out-of-pocket expenses incurred in connection with PCC activities.

The FAF Trustees seek candidates who are highly regarded within their fields of expertise and have a strong appreciation for the importance of independent standard setting for financial accounting and reporting. They should be committed to the mission of the FAF and FASB, demonstrate a concern for the public interest, and have an appreciation for the varying interests and perspectives of investors, lenders, and other users of private company financial statements, and the preparers and auditors of private company financial reports. In reviewing nominations, the Trustees also will consider each candidate’s:

• Background and experience in private company financial accounting and reporting
• History of interest and participation in financial reporting matters or standard-setting activities
• Communication skills, and
• Ability to work collegially and understand and respect conflicting viewpoints.

IMA to Nominate Members
Jeffrey Thomson, president and CEO of the Institute of Management Accountants, said he plans to nominate members of the IMA for the new council. “Going forward, we do intend to follow the process laid out today by the FAF,” he told Accounting Today on Friday. “I do expect that IMA would nominate highly qualified CMA candidates.”

He noted that the FAF had followed many of the IMA’s recommendations in establishing the PCC, including its suggestion for shortening the name of the new council from the Private Company Standards Improvement Council to the Private Company Council.

PCC Chairman Nominations
The PCC chair has the leadership role in carrying out the mission of the PCC. In addition to the qualities sought in all PCC members, PCC chair candidates should have prior experience serving in leadership roles. Candidates also should have the ability to build, maintain, and strengthen constructive relationships with stakeholders of private company financial reporting; the ability to execute the PCC’s agenda; and the ability to lead effective and timely discussions at PCC meetings.

Candidates for the chair and members must demonstrate the ability to commit the time to prepare for and attend meetings of the PCC.

Each candidate for PCC membership and/or chair must be submitted using a completed nomination form; a resume, curriculum vitae (CV), or biographical profile; any other relevant background information; and, in the case of a self-nominee, the name and contact information for a reference. All materials should be submitted by June 30, 2012, to Robert Kalina, Vice President, Human Resources, Financial Accounting Foundation, 401 Merritt 7; P.O. Box 5116; Norwalk, CT 06856-5116, (203) 956-5295; fax (203) 956-5241, email PCCNominations@f-a-f.org

The complete instructions, including nomination form, are available at www.accountingfoundation.org under the “Request for Nominations to the FAF’s Private Company Council” link.

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