The Financial Accounting Standards Board (FASB) shared updates on the Private Company Council’s (PCC) discussions on simplifying accounting processes for private companies. The PCC is researching lease accounting simplifications, subjective acceleration clauses, and effective interest rate calculation methods. FASB staff detailed research findings and sought input from PCC members on selected projects.

The PCC endorsed the Board’s decisions on proposed Accounting Standards Updates for Debt—Modifications and Extinguishments and Liabilities—Extinguishments of Liabilities to simplify debt exchange accounting. FASB staff briefed the PCC on new standards affecting private companies, ensuring awareness of potential impacts on accounting practices.

In Fall 2025, the PCC plans liaison meetings with industry groups like the ProSight Financial Association Accounting Working Group and the Construction Financial Management Association Emerging Issues Committee. Early 2026 will see meetings with the Institute of Management Accountants Small Business Shared Interest Group and surety industry representatives.

FASB opened a public comment period in September 2025 for a proposed Accounting Standards Update standardizing the measurement of paid-in-kind dividends on equity-classified preferred stock. The guidance aims to enhance financial reporting comparability by eliminating current practice inconsistencies.

Read more at Yahoo Finance: FASB provides update on PCC agenda projects