Some in the industry worry that a separate board would lengthen the standard-setting process even more, because both groups would need to weigh in on potential standards, says Meredith Vogel, an audit senior manager with Grant Thornton and former staff member of the Blue Ribbon Panel.

In response to concerns about a separate board, Melancon notes that FASB has had many opportunities to address the issue of private company standards, but has chosen not to. "We believe that if you really want to effect change, you need a separate board," he says. In addition, the time commitment required of FASB, due to its convergence projects with the International Accounting Standards Board, makes the need for a separate board even more critical.

Even so, in early October the FAF issued a proposed plan that would establish a Private Company Standards Improvement Council, or PCSIC. The PCSIC would determine whether exceptions or modifications to U.S. GAAP are required to for private companies. The Council would have "the authority to identify, propose and vote on specific improvements to U.S. accounting standards for private companies," according to a release by the FAF.

Changes approved by a two-thirds majority of the Council would move to the FASB for ratification. They would become final following public comment, further deliberation by the PCSIC, and final ratification by the FASB.