On Wednesday, the board of trustees of the Financial Accounting Foundation (FAF) voted to establish the new Private Company Council (PCC) to deal with potential exceptions or modifications to U.S. Generally Accepted Accounting Principles (GAAP) for private companies.
The PCC’s changes will be subject to endorsement by the Financial Accounting Standards Board (FASB). The council laid out in a previous FAF proposal drew criticism for its lack of independence. However, the American Institute of CPAs (AICPA), which had criticized the previous proposal, voiced its support on Wednesday.
What do you think? How important is independence for private-company standard-setters? Sound off in the comments.