At its May meeting, the PCC approved alternatives in the areas of business combinations and interest rate swaps which are now subject to endorsement by the FASB.
At its May meeting, the PCC proposed to the FASB accounting alternatives for certain transactions involving business combinations and interest rate swaps. The proposed alternatives would permit a private company to apply simplified accounting treatments that would reduce costs and complexity in accounting for and reporting.
The FASB staff will now draft ASUs to capture the alternatives and facilitate their consideration by the FASB. If endorsed by the FASB, the draft ASUs will be exposed for public comment for at least 60 days.
Public company stakeholders should closely follow the activities of the PCC. The FASB has indicated it will also consider if modifications made for private companies should be available to public companies.
Here’s a brief summary of the PCC’s decisions:
Interest rate swaps
Read the May 7 edition of Private company reporter for more on these and other topics discussed at the PCC's May meeting.