Since joining P&N more than 30 years ago, I’ve consulted for many clients in the private company sector, primarily as an external auditor. This work has inspired my passion for serving these stakeholders and addressing their financial reporting issues.
That’s why, in 2016, I took on a second role in addition to my “day job” as a director with P&N: that as chair of the Private Company Council (PCC). The PCC is the primary advisory body to the Financial Accounting Standards Board (FASB) on private company matters. We provide private company input to the FASB throughout its process of setting standards that constitute U.S. Generally Accepted Accounting Principles (GAAP).
As chair of the PCC, I have the privilege of serving alongside 10 other professionals with diverse backgrounds who are dedicated to improving financial reporting for private company stakeholders. They bring to the table a robust understanding of the complex issues facing the FASB as it seeks to serve the best interests of all those who use, prepare, and audit private company financial statements.
It’s a mission we take very seriously. During its relatively short, six-year history, the PCC has accomplished a lot. For example, based on PCC input, the FASB recently issued a standard that reduces the cost and complexity of financial reporting associated with consolidation of variable interest entities (VIEs). The FASB also issued guidance that permits private companies to amortize goodwill and apply a simplified goodwill impairment model.
PCC input also helps inform the FASB’s decisions on private company effective dates for new standards. As a result, private companies are generally given an additional year to implement major standards.
Being part of the PCC has allowed me to participate in something that I’m passionate about—and I hope to share that passion with other private company stakeholders. In upcoming posts, I’ll be bringing you the latest news and information about the PCC, its activities, and—perhaps most importantly—how you can make your voice heard in the standard-setting process.