On the Horizon -- PCC and FASB discuss private company issues

Contents PCC posts highlights of July 19 meeting Comment letters issued

PCC posts highlights of July 19 meeting The Private Company Council (PCC) met on July 19 and recommended that the FASB (1) consider a disclosure-only alternative for private companies related to equity-classified instruments with “down round” antidilution features, and (2) retain the current accounting guidance for refinances when classifying debt as current or noncurrent.

The PCC also discussed the following FASB projects with the Board:
  • Disclosures by business entities about government assistance
  • Research on financial performance reporting

Further, the PCC brought the following matters to the attention of the FASB:
  • Practical difficulties caused by the amendments in ASU 2015-10, Technical Corrections and Improvements, related to what constitutes “readily determinable fair value”
  • The need to eliminate for private companies the fair value disclosures for held-to-maturity debt securities in ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

The next PCC meeting will be held on September 30.

Comment letters issued On July 18, the firm submitted a comment letter in response to the AICPA’s Professional Ethics Executive Committee’s May 2016 exposure draft, Hosting Services.

On July 21, the firm issued a comment letter in response to the SEC’s Concept Release, Business and Financial Disclosure Required by Regulation S-K.

And, on July 25, the firm submitted a comment letter in response to the FASB’s proposed ASU, Consolidation (Topic 810): Interests Held through Related Parties that are under Common Control.

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