At its July 16 meeting, the Private Company Council (PCC) proposed to the FASB an alternative for applying the variable interest entity (VIE) guidance to common control leasing arrangements. The FASB staff will now draft an Accounting Standards Update (ASU) based on the PCC proposal for consideration by the FASB. If endorsed by the FASB, the draft ASU will be exposed for public comment.
The following is a summary of the alternative proposed by the PCC:
The PCC also redeliberated the private company decision-making framework. It reaffirmed many of the decisions previously reached and decided to make some modifications to the framework based on comments received. The framework is expected to be issued in final form during the third quarter of 2013.
This edition of Private company reporter provides further information on the proposed alternative, as well as highlights of other recent developments related to private company reporting.