📋PCC's March 2025 Meeting Recap: Decisions, Discussions, and Deadlines
Acclara AI•
The Private Company Council (PCC) met on March 6, 2025, to discuss a variety of accounting topics, including credit losses, lease accounting simplifications, and updates to several FASB projects. Key decisions were made, and future priorities were set.
Key Points
•📅 Mark Your Calendars: Next PCC meeting set for June 26-27, 2025
•📊 Data Dive: Four main agenda priorities discussed, including lease accounting simplifications
•🗳️ Vote Alert: PCC voted to recommend several amendments to the FASB
•📚 Educational Moves: Release of FASB Staff Educational Paper on construction contracts approved
The PCC's March meeting was packed with discussions on four key agenda items: credit losses, presentation of contract assets, debt modifications, and lease accounting simplifications. The council deliberated on comment letter feedback and made significant recommendations to the FASB, including a practical expedient for measuring credit losses.
Big Recommendation: The PCC voted to recommend that the FASB adopt new guidelines for measuring credit losses on accounts receivable and contract assets. This includes a practical expedient and a prospective transition effective from December 15, 2025, with early adoption permitted.
"These recommendations are set to streamline the implementation process for private companies," a PCC member noted.
🏗️ Educational Initiatives
A highlight of the meeting was the approval to move forward with the FASB Staff Educational Paper on the presentation and disclosure of retainage for construction contractors. This move aims to simplify and clarify accounting practices for the construction industry.
Project Dropped: The Presentation of Contract Assets and Contract Liabilities for Construction Contractors project was removed from both the PCC and FASB agendas.
Forward Thinking: The council also discussed the upcoming activities of the FASB's post-implementation review project on leases, including a nonpublic entity preparer cost survey.
🔍 FASB Project Updates
The PCC reviewed several ongoing FASB projects, expressing support for proposed amendments and recent board decisions. Key projects included share-based consideration payable to a customer and determining the acquirer in the acquisition of a VIE.
Interim Reporting Improvements: The council backed the amendments in the proposed Accounting Standards Update for interim reporting, highlighting the potential benefits for private companies that issue interim financial statements.
"These updates will make interim reporting more manageable for smaller firms," said a PCC member.
🗣️ Community Feedback
Gathering feedback was a major theme, with the PCC discussing insights from recent liaison meetings with the Institute of Management Accountants and the surety industry. The council is also gearing up for upcoming meetings with the AICPA and other key stakeholders.
Annual Report: The PCC Annual Report, highlighting the council's 2024 activities, is set to be published soon.
Next Meeting: Mark your calendars for the next PCC meeting on June 26-27, 2025.
