In January, the PCC revised, then re-approved an alternative offering private companies an exemption from applying the VIE consolidation model to certain arrangements.
At its January 28, 2014 meeting, the Private Company Council (PCC) revised, then re-approved an accounting alternative that would offer private companies an exemption from applying the variable interest entity (VIE) consolidation model to certain common control leasing arrangements. The VIE consolidation model can be costly and complex to apply, and the approved alternative provides a form of relief to private companies by providing an exemption from applying the model to qualifying arrangements.
The approved alternative is now subject to final endorsement by the FASB. If endorsed, a final Accounting Standards Update (ASU) would likely be issued in the first half of 2014, and early adoption would be permitted.
Separately, the PCC continued its redeliberations on an accounting alternative for the recognition and measurement of intangible assets in a business combination. No decisions were reached, and the PCC is expected to resume discussions on the proposed alternative at its next meeting in April 2014.
The PCC also decided it would no longer pursue the combined instruments approach for certain interest rate swaps.