📅 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.