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FASB Calls For Input On Private Company Council Decision-Making Framework

The FASB is seeking feedback on a newly proposed decision-making framework for

Progress on the new Private Company Council is moving along, with the Financial Accounting Standards Board calling for stakeholder input on a new guideline governing the PCC's decision-making

Progress on the new Private Company Council is moving along, with the Financial Accounting Standards Board calling for stakeholder input on a new guideline governing the PCC's decision-making framework.

"The development of a sound decision-making framework is essential to our ongoing efforts to address the unique needs of private company stakeholders while maintaining the high quality of U.S. GAAP," said FASB Chairman Leslie Seidman. "We anticipate that the guidance designed to identify cost-effective alternatives for private companies also will benefit some of the FASB's public and not-for-profit standard-setting activities."

The FASB recently issued a staff paper, which outlines a proposed method for determining when it would be appropriate to modify financial reporting requirements for private companies. The staff paper identified several areas where private company reporting differs from public company reporting, and asks for stakeholder feedback on five areas where guidelines might diverge, including:

• Recognition and measurement
• Disclosures
• Display and presentation
• Effective dates
• Transition methods

The comment period will be open until October 31. Parties interested in submitting a comment can do so at the FASB website. According to the board, none of the topics contained in the Invitation to Comment will be decided upon until after stakeholder feedback has been collected.

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