Private companies are starting to win the accounting exceptions and accommodations they have sought as the Financial Accounting Standards Board endorses three “alternative” accounting proposals put forth by its Private Company Council.
FASB plans to publish three proposed updates to accounting standards in late June that would give private companies exceptions to Generally Accepted Accounting Principles. The proposals would modify the accounting for intangible assets acquired in a business combination, goodwill, and certain types of interest rate swaps for private companies. FASB’s decision to endorse the PCC proposals “represents significant progress in our joint efforts to address concerns about the complexity and relevance of certain standards for private companies that prepare GAAP-based financial statements,” said FASB Chairman Leslie F. Seidman.
