Jun 1st 2012
By Terri Eyden
On June 1, 2012, the Financial Accounting Foundation (FAF) Board of Trustees issued a request for nominations for candidates to serve on the new Private Company Council (PCC).
Nominations for PCC members and the PCC chair must be submitted by the June 30, 2012, deadline.
The PCC is a newly created body with two primary responsibilities intended to improve the process of setting accounting standards for private companies:
- The PCC will determine whether modifications or exceptions to existing nongovernmental US Generally Accepted Accounting Principles (US GAAP) are required to address the needs of users of private company financial statements, based on criteria mutually agreed to by the PCC and the Financial Accounting Standards Board (FASB). Before being incorporated into US GAAP, PCC recommendations will be subject to a FASB endorsement process.
- The PCC will serve as the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB's technical agenda.
PCC members will have backgrounds and experience in using, preparing, and auditing private company financial statements, including:
- Users of private company financial statements, including bank lenders, equity investors, and/or sureties;
- Preparers of private company financial statements from a variety of industries and companies of various sizes; and
- CPA practitioners from national, regional, and local firms.
Members of the PCC will be appointed to a three-year term, with the potential to be reappointed for an additional term of two years. The chair of the PCC will be appointed for such term as the FAF Board of Trustees determines necessary to achieve the objectives of the PCC and allow for an effective transition and continuity of the chair's role. The PCC chair and members will serve without remuneration, but will be reimbursed for out-of-pocket expenses incurred in connection with PCC activities.
PCC Member Profile
FAF trustees seek candidates who are highly regarded within their fields of expertise and have a strong appreciation for the importance of independent standard setting for financial accounting and reporting. They should be committed to the mission of the FAF and FASB; demonstrate a concern for the public interest; and have an appreciation for the varying interests and perspectives of investors, lenders, and other users of private company financial statements as well as the preparers and auditors of private company financial reports. In reviewing nominations, the trustees also will consider each candidate's:
- Background and experience in private company financial accounting and reporting,
- History of interest and participation in financial reporting matters or standard-setting activities,
- Communication skills, and
- Ability to work collegially and understand and respect conflicting viewpoints.
PCC Chair Profile
The PCC chair has the leadership role in carrying out the mission of the PCC. In addition to the qualities sought in all PCC members, PCC chair candidates should have prior experience serving in leadership roles. Candidates also should have the ability to build, maintain, and strengthen constructive relationships with stakeholders of private company financial reporting; the ability to execute the PCC's agenda; and the ability to lead effective and timely discussions at PCC meetings.
Candidates for the chair and members must demonstrate the ability to commit the time to prepare for and attend meetings of the PCC.
Each candidate for PCC membership and/or chair must be submitted using a completed nomination form; a resume, curriculum vitae (CV), or biographical profile; any other relevant background information; and, in the case of a self-nominee, the name and contact information for a reference.
All materials should be submitted by June 30, 2012, to:
Robert Kalina, Vice President, Human Resources
Financial Accounting Foundation
401 Merritt 7; PO Box 5116
Norwalk, CT 06856-5116
Phone: (203) 956-5295
Fax: (203) 956-5241
The complete instructions, including nomination form (in a Word document), are available under the "Request for Nominations to the FAF's Private Company Council" link.