The Financial Accounting Standards Board (FASB) has provided an update on the latest discussions and feedback sessions of The Private Company Council (PCC) from their recent meeting. 

The PCC has been evaluating several accounting areas to potentially simplify processes for private companies. 

It has requested further research on three topics, which are part of its agenda prioritisation process: lease accounting simplifications, subjective acceleration clauses, and methodologies for calculating the effective interest rate. 

Updates were given on selected research projects, where FASB staff detailed the research conducted, feedback received—including that from private companies—and the integration of prior PCC feedback into the Board’s discussions.  

PCC members were invited to provide further input on these projects. 

On the technical front, the PCC reviewed updates on selected projects and how their previous feedback was taken into account by the Board. 

One of the key outcomes from the PCC’s deliberations is the endorsement of the Board’s decisions on the proposed Accounting Standards Update concerning Debt—Modifications and Extinguishments (Subtopic 470-50) and Liabilities—Extinguishments of Liabilities (Subtopic 405-20).  

The proposed amendments are intended to simplify the accounting for debt exchanges. 

FASB staff also briefed the PCC on recently issued standards, noting their applicability to private companies. This ensures that the PCC remains abreast of new standards that could impact their accounting practices. 

The PCC’s engagement extended to a meeting with the AICPA Private Company Practices Section Technical Issues Committee (TIC), where they discussed a range of topics, including lease accounting and the interest method for effective interest rate determination. 

In the coming years, the PCC is set to conduct liaison meetings with various industry groups, including the ProSight Financial Association Accounting Working Group, the Construction Financial Management Association Emerging Issues Committee, and others in Fall 2025.  

Early 2026 will see further meetings with groups such as the Institute of Management Accountants Small Business Shared Interest Group and from the surety industry representatives. 

In September 2025, the FASB opened a public comment period for the proposed Accounting Standards Update designed to standardise the measurement of paid-in-kind dividends on equity-classified preferred stock.  

This proposed guidance seeks to eliminate inconsistencies in current practices and improve financial reporting comparability.