The Private Company Financial Reporting Committee met Thursday and Friday with the Financial Accounting Standards Board to hear about the progress of the latest projects affecting privately held and small businesses.
The meeting at FASBs offices in Norwalk, Conn., also included a meeting with FASBs Small Business Advisory Committee. The PCFRC is a joint effort of FASB and the American Institute of CPAs. The group received an update on SEC matters from a representative of the Small Business Advisory Committee, as well as from a member of the Public Company Accounting Oversight Board who is also on the SBAC, according to PCFRC Chair Judy ODell.
The PCFRC and the SBAC mostly talked about the future of private company accounting, including a letter that ODell wrote last month to Financial Accounting Foundation Chairman John Brennan asking his group, which oversees FASB, to examine the issue of private company accounting and how it fits into FASBs mission. The request was discussed, but no definite conclusions were reached, according to ODell.
The PCFRC also heard an update from FASB Chairman Bob Herz on various FASB projects, including accounting for multi-employer pension plans, which have become more of an issue lately.
After an adjournment, the committee discussed FASBs disclosure framework project, which the board initiated in July to encourage more useful, organized and consistent disclosures from companies. Its still in its very early stages, but we intend to stay involved and follow that project, said ODell.
Several members of her committee, including a banker, a venture capitalist and a surety company representative who handles construction bonds, spent time explaining to FASB what they like and dont like about financial statements. The board also discussed topics such as fair value, liabilities and equity, the financial statement presentation project, and how the PCFRC can provide more input to FASB.
The PCFRC also met with a FASB staff member to discuss the FAS 167 project on variable-interest entities and how private company issues relate to the project. ODell does not anticipate any new comment letters coming out of this weeks meetings, but her committee plans to continue to monitor the various FASB projects as they progress.
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