Private Company Council (PCC)

About the PCC

What are the PCC’s responsibilities?

The PCC is the primary advisory body to the FASB on private company matters. The PCC uses the Private Company Decision-Making Framework to advise the FASB on the appropriate accounting treatment for private companies for items under active consideration on the FASB’s technical agenda. The PCC also advises the FASB on possible alternatives within GAAP to address the needs of users of private company financial statements. Any proposed changes to GAAP are subject to endorsement by the FASB.

PCC Members

  • Candace E. Wright—appointed PCC Chair, serves as a director with Postlethwaite & Netterville, a Louisiana-based accounting and business advisory firm. Ms. Wright also serves as the service line leader for the firm’s Assurance Services Group and the firm’s quality control director; and leads the Financial Institutions industry group and Peer Review Services.
  • George Beckwith—vice president and chief financial officer of National Gypsum Company in Charlotte, North Carolina.
  • Steven Brown—credit risk manager and senior vice president of US Bank in Portland, Oregon.
  • Jeffery Bryan—partner, Professional Standards Group of Dixon Hughes Goodman LLP in High Point, North Carolina.
  • Timothy J. Curt—managing director and partner of Warburg Pincus LLC in New York, NY.
  • Thomas Groskopf—director and owner of Barnes, Dennig & Co., Ltd. in Cincinnati, Ohio.
  • David S. Lomax—assistant vice president and underwriting officer of Liberty Mutual Insurance Company in Plymouth Meeting, PA.
  • Harold L. Monk Jr.—partner of Carr, Riggs & Ingram LLC in Gainsville, FL.
  • Carleton Olmanson—managing principal of GMB Mezzanine Capital in Minneapolis, Minnesota.
  • Lawrence Weinstock—vice president – Finance of Mana Products, Inc. in Long Island City, New York.
On August 18, 2015 the FAF Trustees appointed a new chair and three new members of the PCC to three-year terms that begin on January 1, 2016. Six PCC members were reappointed. More information on the appointments can be found in this press release.

FASB liaison
is Daryl E. Buck, FASB Board Member
Mr. Daryl E. Buck
FASB
401 Merritt 7, P.O. Box 5116
Norwalk, CT 06856-5116
(203) 956-5330
FAX (203) 847-6030
debuck@fasb.org

FAF Trustee Observer is Diane Rubin, Chair of the FAF’s Private Company Review Committee (PCRC) and/or other members of the PCRC.

PCC Coordinator is Michael K. Cheng
Mr. Michael K. Cheng
FASB
401 Merritt 7, P.O. Box 5116
Norwalk, CT 06856-5116
(203) 956-5236
FAX (203) 849-9470
mkcheng@fasb.org
 

How Do the PCC and the FASB Work Together?

Operating Procedures. The PCC will review and propose alternatives within GAAP to address the needs of users of private company financial statements. The PCC will vote on proposed alternatives, which must be approved by a two-thirds vote of all PCC members.

Proposed alternatives to GAAP approved by the PCC will be submitted to the FASB for a decision on endorsement. If endorsed by a simple majority of FASB members, the proposed alternatives will be exposed for public comment. Following receipt of public comment, the PCC will consider changes to the original decision and take a final vote. If approved, the final decision then will be submitted to the FASB for a final decision on endorsement.

If the FASB does not endorse a proposed or final alternative, the FASB Chair will provide to the PCC Chair, within a reasonable period of time, a written document describing the reason(s) for the non-endorsement. The document also will include possible changes for the PCC to consider that could result in a decision by the FASB to endorse. This document will become part of the FASB’s public record.

For projects under active consideration on the FASB’s technical agenda, the PCC will advise the FASB about the implications for private companies. The PCC will work actively and closely with the FASB during its deliberations on projects for which the FASB and/or the PCC believe the private company perspective is important.

PCC Chair. The PCC Chair works cooperatively with the FASB liaison member, the FASB Chair, and the FASB Technical Director to accomplish the functions of the PCC and to help facilitate the work of the FASB with respect to private company standard setting activities.

FASB Liaison. The FAF Trustees appointed FASB member Daryl Buck to serve as a liaison between the FASB and the PCC. The primary purpose of this liaison role is to serve as the main point of contact to facilitate communications and integration between the PCC and the FASB. The FASB liaison is not a member of the PCC.

FASB Staff Support. The FASB Technical Director will assign specific members of the FASB’s technical and administrative staff – some of whom will be dedicated, some of whom will be assigned as needed based on their specific technical expertise – to support the PCC. In consultation with the PCC Chair, the FASB Technical Director will identify additional technical staff with specific subject area expertise for particular agenda projects as determined necessary.

The assigned FASB technical staff provides assistance and support to the PCC that includes, among other things, the following:
  • Performing research and outreach
  • Preparing and providing appropriate reference and background materials
  • Identifying various stakeholder views
  • Developing possible alternatives for consideration in addressing technical issues
  • Participating in meeting discussions
  • Analyzing and summarizing public comments and other stakeholder input
  • Drafting due process documents.
Assigned staff also provides administrative support to the PCC Chair in organizing meetings, preparing meeting announcements, agendas, materials, minutes, and other public updates, and coordinating any additional PCC activities as determined to be appropriate. The PCC Chair and members will have a significant level of direct interaction with assigned members of the FASB staff.

FASB Attendance at PCC Meetings: The FASB liaison and all FASB members are expected to attend and participate in all deliberative meetings of the PCC. Participation by FASB members will facilitate their understanding of private company stakeholder perspectives and PCC members’ views, and is expected to enable a more efficient FASB endorsement process. FASB participation also will assist the PCC in considering potential concerns or alternatives raised by FASB members.

What Are the PCC’s Operating Procedures?

In response to stakeholder input to the Three-Year Review of the PCC, the FAF Trustees made targeted improvements to increase the PCC’s effectiveness without significantly changing the PCC’s roles and responsibilities. In November 2015, FAF Trustees issued amendments to the “Responsibilities and Operating Procedures of the Private Company Council” that was originally included in the May 2012 Report that established the PCC. The amendments include establishment of working groups within the PCC for active FASB projects, mechanisms to increase the transparency of the PCC’s discussions and views, and creation of a PCC Technical Agenda Consultation Group.The amended PCC Procedures, effective January 1, 2016, is available here.

History of Establishing the PCC

Background and history of the events leading up to the creation of the PCC, including the final plan, comment letters, public roundtables, and the initial FAF plan to create a private company standards council. More