A few years ago at the strong behest of NVCA and others, the Financial Accounting Foundation (FAF), the parent organization to the Financial Accounting Standards Board (FASB) and the Government Accounting Standards Board (GASB), created the Private Company Council (PCC) to ensure that the reporting and disclosure needs of private companies were reflected in accounting policy. As a part of the PCC’s establishment, the FAF Trustees mandated a three year review in which it would reach out for input from various constituencies.
Now that we are at the three year mark, FAF reached out to PCC’s constituencies and asked for general feedback, commentary on whether specific goals had been met and recommendations for possible changes that should be made. In early May, NVCA submitted its comments to the FAF Trustees, which you can download here.
In its comments, NVCA pointed out that the PCC was working as intended and deserved to continue its work. From NVCA’s vantage point, a good array of benefits have resulted from PCC’s direct actions as well as its constant engagement with the FASB on matters of relevance, cost/benefit and usefulness of disclosures for all companies. In its comments, NVCA voiced concerns with concepts floated by the Trustees to reduce the independence or standing of the PCC, writing, “PCC’s independence from the FASB is essential to its ability to best serve the interest of the users, preparers and practitioners working with private company financial statements.”
You can read our full letter here.