Billy M. Atkinson, the chairman of the Private Company Council that helps set accounting standards for privately held companies, said Wednesday that he will not seek a second term as head of the group after his current term expires at the end of this year.

As a result, the Board of Trustees of the Financial Accounting Foundation, which oversees the PCC along with the Financial Accounting Standards Board and the Governmental Accounting Standards Board, has issued a request for nominations for candidates to succeed Atkinson next January and to fill other potential vacancies on the Council.

“I believe that the PCC in its first three years has made great strides in improving the standard-setting process for private companies,” Atkinson said in a statement. “Our members have done an excellent job of weighing the need for GAAP alternatives for private companies without creating two separate sets of GAAP. And the support we have received from both the FAF and the FASB has been consistent and strong.”

The PCC was established by the trustees in 2012 to help FASB improve the process of setting accounting standards for private companies. In addition to advising FASB on its current projects, the PCC also suggests to FASB potential alternatives for private companies within U.S. GAAP.

In announcing the call for nominations, Jeffrey J. Diermeier, chairman of the FAF Board of Trustees, thanked Atkinson, the PCC’s first chairman, for successfully guiding the Council during its initial three years.

“Billy’s unique leadership was instrumental in launching the PCC and setting the right tone of collaboration and cooperation in its work with the FASB,” he said. “Under his tenure, the Council made important progress in achieving the goals that the Trustees established when the PCC was created in 2012.”

The PCC chair and members are appointed to three-year terms, with the possibility of reappointment to an additional term of two years. The initial terms of the current 10 PCC members will expire on Dec. 31, 2015.

Beginning in 2016, the trustees will establish staggered terms for some PCC members to promote continuity and an orderly rotation of members. Terms of new PCC members, including the PCC chairman, will begin on Jan. 1, 2016.

As outlined in a Three-Year Review of the PCC, the trustees are seeking individuals to serve on the Council who have the skills, expertise, and resources necessary to advise the FASB on active projects. They also must have the ability to identify potential private company alternatives in GAAP and develop and analyze alternative solutions and proposals related to those projects.

Candidates should commit the time to prepare for and attend meetings of the PCC, the trustees noted. The PCC chair and members serve without remuneration, but are reimbursed for out-of-pocket expenses incurred in connection with PCC activities.

PCC Member Profile
The trustees are seeking users, preparers, and CPA practitioners 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, the FASB, and the PCC; 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.

Through the nomination process, the trustees said they are seeking to develop a pool of PCC candidates who could be called on to serve on the Council as members’ terms expire during the next few years. 

PCC Chairman Profile
The PCC chairman has the leadership role in carrying out the mission of the PCC. In addition to the qualities sought in all PCC members, PCC chairman 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.

Submitting Nominations
Each candidate for PCC membership and/or chairman must be submitted using a completed nomination form; a resume, curriculum vitae 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 May 8, 2015 to:

Robert Kalina, Vice President, Human Resources
Financial Accounting Foundation
401 Merritt 7; PO Box 5116; Norwalk, CT 06856-5116
Phone: (203) 956-5295; FAX: (203) 956-5241;

The complete instructions, including nomination form, are available here.

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