PCC Flash Report - January 2014

January 2014

The FASB recently completed three standards for private companies. The first new Accounting Standards Update (ASU) defines a public business entity. That definition determines which entities may be eligible for the accounting alternatives developed by the Private Company Council (PCC). The other two new ASUs represent the PCC’s initial accounting alternatives for private companies. They are intended to simplify the accounting for goodwill and make it easier to apply hedge accounting to certain “plain-vanilla” interest rate swaps. Private companies will be able (but not required) to adopt the new standards for December 31, 2013 year-end financial statements that are not yet available for issuance. This financial reporting newsletter summarizes all three standards and also provides answers to frequently asked questions in the appendices.