Request for Nominations to the FAF’s Private Company Council
STATEMENT OF THE FINANCIAL ACCOUNTING FOUNDATION
The call for nominations for the chair and members for the Private Company Council (PCC) has now ended. The FAF has received more than 100 nominations for the PCC. The FAF is very appreciative of the strong response to its request for nominations. The FAF Board of Trustees will now commence its review of the candidates. Further announcements will be made as the process continues.
June 1, 2012
The Trustees of the Financial Accounting Foundation (FAF) currently are seeking candidates for chair and members of the newly created Private Company Council (PCC). The PCC determines whether modifications or exceptions to existing nongovernmental U.S. Generally Accepted Accounting Principles (U.S. 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). Any proposed changes to existing U.S. GAAP are subject to endorsement by the FASB and undergo thorough due process. The PCC also serves 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. For more information on the role of the PCC, please see the PCC Final Report
on the FAF website.
The PCC’s membership will include individuals with backgrounds and experience in preparing, auditing (including compiling and reviewing), and using private company financial statements. Members of the PCC, including the Chair, will demonstrate (1) a keen interest in and knowledge of financial accounting and reporting matters; (2) experience working with private companies; and (3) a commitment to improving financial reporting for users of private company financial statements. More specifically, the FAF Board of Trustees is seeking nominations of individuals with backgrounds and experience as follows:
- 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
- CPA practitioners from national, regional, and local firms.
Nominations are sought from all entities and individuals with an interest in private company financial reporting.
PCC Candidate Profile
The ideal candidates will be highly regarded within their fields of expertise and have a strong appreciation for the importance of independent standard setting for financial accounting and reporting. Candidates will 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, and the preparers and auditors of private company financial reports.
When assessing candidates for appointment to the PCC, the FAF Board of Trustees also will consider, among other factors, the following:
- Background and level of experience in private company financial accounting and reporting
- History of interest and participation in financial reporting matters or standard setting activities
- The ability to work collegially and to understand and respect conflicting viewpoints
- The ability to consider the evidence on all sides of an issue and analyze it objectively when forming a view
- The ability to communicate effectively.
Candidates must demonstrate the ability to commit to the time to prepare for and attend meetings of the PCC. (See “Time Commitment and Other Information” below.)
PCC Chair Profile
The PCC chair has the leadership role in carrying out the mission of the PCC. In addition to the qualities described above that apply to all PCC members, when assessing candidates to serve as chair of the PCC, the FAF Board of Trustees will consider, among other factors, the following:
Time Commitment and Other Information
- The ability to build, maintain, and strengthen constructive relationships with stakeholders of private company financial reporting
- The ability to execute and modify, when necessary, the PCC’s agenda
- The ability to guide discussions at PCC meetings to ensure an effective and timely communication of views and conclusions reached by the PCC
- Availability of time to carry out the chairman’s responsibilities
- Prior experience serving in leadership roles such as on boards of directors or board committees.
The PCC is expected to meet at least five times per year, with additional meetings held as the PCC Chair determines necessary for the PCC to effectively and efficiently perform its functions. Generally, PCC meetings will be held at the FASB’s offices in Norwalk, Connecticut. The PCC Chair may choose to hold up to two meetings per year in other locations, if appropriate and necessary to ease travel issues for the convenience of PCC members and interested stakeholders.
Members of the PCC will be appointed to a three-year term and may be reappointed for an additional term of two years (for a total of five years). Membership terms may be staggered to establish an orderly rotation and maintain appropriate continuity on the PCC. 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 chairman’s role.
Members of the PCC serve without remuneration, but will be reimbursed for actual out-of-pocket expenses incurred in connection with PCC activities as they may request, provided that those expenses comply with FAF policies.
The following information is requested for each candidate for PCC membership and/or chair. (Individuals are permitted to nominate themselves. Self-nominees are requested to also provide a reference.)
All materials should be submitted by June 30, 2012, to:
completed nomination form
- A resume, CV, or biographical profile
- Any other background information that may be relevant to the individual’s candidacy for the PCC
- The name and contact information for a reference (in the case of a self-nominee).
Robert Kalina, Vice President, Human Resources
Financial Accounting Foundation
401 Merritt 7; P.O. Box 5116; Norwalk, CT 06856-5116
Phone: (203) 956-5295; FAX: (203) 956-5241; Email: PCCNominations@f-a-f.org