The AICPA, for one, was "profoundly disappointed"in the outcome, according to a release. "We don't think the concerns of smaller private companies can be fully appreciated until there is an independent board dedicated and focused solely on the needs of private companies," the release said.

"It falls short because an independent board was not created," said Melancon, separately. "This is not any different than what we now have with the PCFRC, since FASB still has veto power. In addition, FASB is not representative enough of the private company constituency."

The solution recognizes the competing objectives the FAF is trying to meet, Hepp says. While some want a strong, independent group with the ability to ratify standards, the FAF also wants to avoid developing a two-GAAP system.

"There was some fear that a new board would drift off to "little GAAP," Vogel says.

While the FAF is accepting comments on its proposal by January 14, 2012, it's likely that a Council will be put in place for at least a few years, Vogel adds.