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Private Company Council to Oversee Accounting Standards for Private Firms

A new report details the responsibilities and operational procedures of the ne

Following a recent vote to establish the Private Company Council, the Financial Accounting Foundation on May 30 released its final report on the new agency.

The newly-minted PCC will help establish accounting standards for privately-held companies. Many organizations had complained that private companies were subject to financial reporting standards designed to help stockholders and potential investors decipher public company reports. Since private companies have no stockholders, these businesses felt the regulations were extraneous and unnecessary.

The FAF's final report includes information regarding the establishment of the new agency, including: background and key events for standard setting for private companies; discussion topics and other issues the FAF trustees considered when making their decision; and the purview of the new agency, including operating procedures and responsibilities.

In addition to background information from the FAF itself, trustees are also including a summation of the suggestions and remarks received on the proposal during a comment period earlier this year, as well as at several public discussion meetings held at various locations across the country. According to the FAF, open nominations for PCC board chair and other positions will begin June 1.