Private Company Council (PCC)

About the PCC

What are the PCC’s responsibilities?

The Private Company Council (PCC) has two principal responsibilities:
  1. The PCC and the Financial Accounting Standards Board (FASB), working jointly, will mutually agree on a set of criteria to decide whether and when alternatives within U.S. Generally Accepted Accounting Principles (GAAP) are warranted for private companies. Based on those criteria, the PCC will review and propose alternatives within U.S. GAAP to address the needs of users of private company financial statements.
  2. The PCC also serves as the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB’s technical agenda.

PCC Members

  • Billy M. Atkinson–appointed PCC Chairman, is a past chairman of the National Association of State Boards of Accountancy (NASBA) from 2009-10. He was nominated by the Texas Society of CPAs, the Texas State Board of Public Accountancy, and NASBA.
  • Mr. Billy M. Atkinson
    21 Ellicott Way
    Sugar Land, TX 77479
    (713) 504-6545
    batkinson72@gmail.com
  • George Beckwith–vice president and chief financial officer of National Gypsum Company in Charlotte, North Carolina. He was nominated by Nperspective.
  • Steven Brown–vice president of US Bank in Portland, Oregon. He was nominated by the American Bankers Association.
  • Jeffery Bryan–partner, Professional Standards Group of Dixon Hughes Goodman LLP in High Point, North Carolina.
  • Mark Ellis–chief financial officer of BabyGanics, PawGanics, PetLabs360 - KAS Direct LLC Businesses in Hicksville, New York. He was nominated by the AICPA.
  • Thomas Groskopf–director and owner of Barnes, Dennig & Co., Ltd. in Cincinnati, Ohio. He was nominated by Mueller Roofing Distributors, Inc. and Barnes, Dennig & Co., Ltd.
  • Neville Grusd–president of Merchant Financial Corporation in New York, New York.
  • Carleton Olmanson–managing principal of GMB Mezzanine Capital in Minneapolis, Minnesota. He was nominated by the Office of Paul Volcker.
  • Diane Rubin–retired partner of Novogradac & Company LLP in San Francisco, California. She was nominated by NASBA.
  • Lawrence Weinstock–vice president – Finance of Mana Products, Inc. in Long Island City, New York.

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 Mack Lawhon, Weaver LLP

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 and the FASB, working jointly, will mutually agree on a set of criteria to decide whether and when alternatives within U.S. GAAP are warranted for private companies. Based on those criteria, the PCC will review and propose alternatives within U.S. GAAP to address the needs of users of private company financial statements.

First, the PCC will conduct a review of existing U.S. GAAP and identify standards that require reconsideration. The PCC will vote on proposed alternatives, which must be approved by a two-thirds vote of all PCC members.

Proposed modifications or exceptions to U.S. 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 modifications 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 modification or exception, the FASB Chairman 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.

PCC Chair. The PCC Chair works cooperatively with the FASB liaison member, the FASB Chairman, 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 key elements to the PCC’s operating procedures?

The complete report establishing the PCC, including background materials, key discussion issues considered by the Trustees, and PCC responsibilities and operating procedures is available in this report and in this announcement.

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