part 1.private company council

Question 1

the accounting for goodwill by a private company allows for goodwill to be amortized over a period not to exceed 10 years?

Answer 1

true

Question 2

the purpose of the private company council is to work with the fasb to set accounting standards for private companies

Answer 2

yes

Question 3

what modification is allowed for private companies related to accounting for interest rate swap?

Answer 3

the hedge accounting for a receive variable/pay fixed interest rate swap is simplified. the private company can assume 100% effectiveness and can use settlement value as a practical expedient for fair market value

Question 4

what is a private company?

Answer 4

one that is not public. public co. is one that is required to file or furnish f/s with a regulatory agency related to any type of securities (debt and equity) whether those securities are traded on exchanges or over-the-counter

Question 5

what modification is allowed for private co related to accounting for goodwill?

Answer 5

goodwill can be amortized over a period of 10 years

Question 6

what does private company count (pcc) do?

Answer 6

works with fasb to set accounting standards for private companies