📊Private Company Council Meeting Recap—June 26-27, 2025
Acclara AI•
The PCC meeting covered hot topics like lease accounting simplifications and subjective acceleration clauses, providing key insights into the latest accounting standards and private company feedback.
Key Points
•📅 Dates: June 26-27, 2025
•📋 Agenda Highlights: Lease accounting, subjective acceleration clauses, interest method, and more
•💭 FASB Consultation: Input on equity method, ESOP repurchase disclosures, and more
•🛠️ Project Updates: Accounting for software costs, government grants, paid-in-kind dividends
📅 Meeting Overview
The Private Company Council (PCC) met over two days, diving deep into the nitty-gritty of accounting standards. From lease accounting simplifications to subjective acceleration clauses, these topics had PCC members and FASB experts engaged in lively discussions.
📝 Agenda Priorities
The PCC zeroed in on five major topics for further research: lease accounting simplifications, subjective acceleration clauses, interest method and determining the effective interest rate, weighted-average disclosures, and short-cycle manufacturing. Here's the scoop:
PCC members highlighted significant initial implementation costs for lease accounting but noted a drop in ongoing application costs.
The complexities of embedded leases, lease modifications, and related party lease disclosures were hot topics.
Subjective acceleration clauses in debt arrangements were a major concern, with discussions on how often lenders enforce these clauses.
💭 FASB Agenda Consultation
PCC members advised the FASB on priorities for private companies, including equity method accounting and ESOP repurchase obligations. They stressed the importance of simplifying these areas to better serve private company stakeholders.
🛠️ Project Updates
FASB staff updated PCC members on selected projects, such as accounting for software costs and government grants. PCC members appreciated the Board's responsiveness to their feedback.
Accounting for and Disclosure of Software Costs: Members supported decisions made during redeliberations, especially the choice not to require additional disclosures.
Accounting for Government Grants: Aligning with International Accounting Standards, this project received positive feedback.
Accounting for Paid-in-Kind Dividends: The goal is to reduce diversity in practice, and PCC members are all in.
