FASB provides an update on PCC agenda projects

The Financial Accounting Standards Board (FASB) provided an update on the latest discussions and comment sessions for the Private Companies Council (PCC) from its most recent meeting.

PCC has evaluated several accounting areas to streamline operations for private companies.

It has requested further research on three topics, which form part of its agenda prioritization process: lease accounting simplification, self-acceleration provisions, and effective interest rate calculation methodologies.

Updates were provided on selected research projects, with FASB staff detailing the research conducted, the comments received—including those from private companies—and the incorporation of previous PCC comments into Board discussions.

ACC members have been invited to provide further input on these projects.

On the technical level, the Project Coordination Committee reviewed updates on selected projects and how the Board took its previous comments into account.

One of the main outcomes of the deliberations of the PCC is the endorsement of the Board’s decisions on the proposed accounting standards update in relation to Debts – Adjustments and Amortizations (Subtopic 470-50) and Liabilities – Amortization of Obligations (Subtopic 405-20).

The proposed amendments aim to simplify accounting for debt exchanges.

FASB staff also briefed the PCC on the recently issued standards, noting their applicability to private companies. This ensures that the PCC stays informed of new standards that could affect its accounting practices.

PCC’s engagement extended to a meeting with the Technical Issues Committee (TIC) of the AICPA’s Private Firm Practices Section, where they discussed a range of topics, including lease accounting and the interest method for effectively determining an interest rate.

In the coming years, the PCC is scheduled to hold liaison meetings with various industry groups, including the ProSight Financial Association’s Accounting Working Group, the Construction Financial Management Association’s Emerging Issues Committee, and others in the fall of 2025.

Early 2026 will see more meetings with groups such as the Institute of Management Accountants’ Small Business Joint Interest Group and from assurance industry representatives.

In September 2025, the Financial Accounting Standards Board I opened public comment Proposed accounting standards update period designed to standardize the measurement of dividends in kind paid on preferred stock classified as equity.

This proposed guidance seeks to eliminate inconsistencies in current practices and improve the comparability of financial reporting.

“FASB Provides Update on PCC Agenda Projects” was originally created and published by Accountantwhich is a trademark of GlobalData.

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