On February 14, the Financial Accounting Standards Board (FASB) released its Proposed Accounting Standards Update, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

“The proposed accounting standard would measure financial assets based on how a reporting entity would realize [their] value as part of distinct business activities, while the measurement of financial liabilities would be consistent with how the entity expects to settle those liabilities,” according to FASB chair Leslie Seidman, in an accompanying statement. The revised proposal responds to feedback on the board’s 2010 exposure draft by simplifying “the multitude of classification methods currently in use,” she added, and “offers an opportunity for convergence with the IASB’s proposal issued last November.” Stakeholders are asked to provide written comments by May 15, 2013.

Also last week—in their first joint standard-setting effort—the FASB and the Private Company Council (PCC) agreed to seek additional public input on a proposed private company decision-making framework. The framework outlines criteria to determine whether and in what circumstances it is appropriate to adjust financial reporting requirements for private companies following U.S. GAAP.

In its second-ever meeting, the PCC also agreed to keep three items from its original agenda—consolidating variable interest entities, accounting for “plain vanilla” interest rate swaps, and measuring various IP assets acquired in business combinations—but dropped a fourth item (accounting for tax uncertainties), according to a release. Lastly, the council directed the FASB staff to develop research on two potential additional topics: stock-based compensation and early-stage enterprises.