The Financial Accounting Foundation chairperson Jack Brennan is under pressure from the private-entity welfare to establish a new body-the Private Company Council-to decide different GAAP for private companies. PCC advocates-including the US Chamber of Commerce-contend that traditional US GAAP has too many disclosure and fair-worth demands that demand very high compliance costs on private companies.
However, there are powerful players-comprising of the Big Four auditors-who resist developing the PCC. They dispute that the compliance expenditure of traditional GAAP are the worth of high-quality accounting standards. Harmonizing these strong interests, a decision must be made by Brennan on the PCC; at stake is the ability to ease capital allocation decisions in the economy of US GAAP.
The Private Company Council Case Study Solution
PUBLICATION DATE: January 07, 2013 PRODUCT #: 113045-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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