Private companies have won two critical exceptions to accounting standards, and they may eventually affect requirements for public companies as well.
The Financial Accounting Standards Board recently made accounting history when it approved two changes to accounting standards meant specifically to address the concerns of private companies. As recommended by FASB’s Private Company Council and approved by FASB, private companies will have simpler methods of dealing with goodwill impairments and hedge accounting involving interest rate swaps. FASB says the final standards will be published by the end of the year.
