Acquisition of Subsidiary using Both Private Company Council and Public Company Accounting

Authors

  • James Penner Western Michigan University
  • Cari Burke Western Michigan University
  • Jerry Kreuze Western Michigan University

Abstract

In 2012, the Financial Accounting Foundation (parent of the FASB) created the Private Company Council (PCC) to address the complexity of financial accounting and reduce some of the reporting requirements for private companies. This case study helps undergraduate and graduate accounting students examine the choices management has in deciding which form of US GAAP to implement. In addition, the case study helps students become aware of the issues and complexities of company acquisitions that management should consider when the company chooses the accounting alternatives provided by the PCC. The ensuing discussion centers on these presentation and accounting differences. The case also explores the potential difficulty faced by private companies that utilize one or more US GAAP choices offered under the PCC who must adjust their financial statements to meet US GAAP required for public companies, for example, in the case of an IPO.

Author Biographies

  • James Penner, Western Michigan University
    Associate Professor of Accountancy
  • Cari Burke, Western Michigan University
    Assistant Professor of Accountancy
  • Jerry Kreuze, Western Michigan University
    Professor of Accountancy

Downloads

Published

2023-12-30

How to Cite

Acquisition of Subsidiary using Both Private Company Council and Public Company Accounting. (2023). The Accounting Educators’ Journal, 33. https://www.aejournal.com/ojs/index.php/aej/article/view/563