Private Company Financial Reporting Committee (PCFRC)

The Financial Accounting Standards Board (FASB) embarked on a major initiative to further improve the FASB’s current standard-setting process. Under the initiative, the Private Company Financial Reporting Committee (PCFRC) was formed in June 2006 and held its first meeting in April, 2007. The PCFRC represents all non-public business entities regardless of size. Its members focus on how standard-setting affects day-to-day technical activities and procedures from a cost/benefit perspective. The PCFRC sets its own agenda and makes specific technical recommendations for possible modifications for private companies on existing or developing FASB standards. The PCFRC consists of 12 members plus a chair. The 12 members comprise four users, four preparers, and four CPA practitioners. Sponsored by the FASB, the PCFRC receives additional administrative support from the American Institute of Certified Public Accountants. 

The PCFRC met in Norwalk, CT, June 28-29, 2012. At the June 28th session the PCFRC met with FASB staff. The staff provided updates on various projects including the following:

  • Nonpublic entity fair value measurement disclosures
  • Consolidations—principal vs. agent
  • Financial instruments
  • Presentation of comprehensive income
  • Leases
  • Investment property entities
  • Disclosure framework
  • Liquidation basis of accounting and going concern
  • Revenue recognition
  • Private company decision making framework.
On June 29th the PCFRC met with the Board of the FASB to provide input about private company views on various topics including the following:

  • General update and comments from FASB
  • Decision-making framework for private companies
  • Leases
  • Consolidation—principal vs. agent
  • Financial instruments: impairment
  • Disclosure framework
  • Nonpublic entity fair value measurement disclosures.
For more details, refer to the meeting minutes on the PCFRC website.

Additional Information

If you would like more information about the PCFRC, please email, call, or write:

Jeff Mechanick
Assistant Director
Financial Accounting Standards Board
401 Merritt 7
P.O. Box 5116
Norwalk, CT 06856-5116

Telephone: (203) 956-5301
FAX: (203) 849-9470