Private company alternatives to become more accessible

Written by promotiondept

November 13, 2018

Private company alternatives to become more accessible Private company financial reporting alternatives will become more accessible under a Private Company Council (PCC) decision endorsed by FASB in December. FASB endorsed the PCC’s consensus to remove the effective dates from four GAAP alternatives that were developed by the PCC. This paved the way for the drafting […]

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Private company alternves to become more accessible

Private company financial reporting alternves will become more accessible under a Private Company Council (PCC) decision endors by FB in December.

FB endors PCC’s consensus to remove effeive dates from four alternves that were develop by PCC. This pav way for drafting of an Accounting Update (U) for vote by written ballot that would formally remove effeive dates.

Removing effeive dates would allow private companies to forgo an initial preferability sessment that orwise would have been requir under Topic 20, Accounting Changes and Error Correions, when alternves were initially ele.

Effeive dates will be remov from:

FB also endors PCC’s decisions to indefinitely extend transition guidance of four Us and to require private companies eleing one or more of alternves to make change using original transition provisions includ in those Us for ft year appli.

Under this guidance, accounting alternves within U No. 204-02, U No. 204-03, and U No. 204-07 must be appli of beginning of ft annual reporting period in which each alternve is ele. accounting alternve within U No. 204-08 must be appli of ft in-scope transaion in annual reporting period in which alternve is ele.

Ken Tysiac (ktysiac@aicpa.org) is a JofA itorial direor.


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