FASB approves goodwill triggering event assessment alternative for private companies and NFPs, expands scope
The Board has directed the FASB staff to draft a final standard on an alternative for private companies and non-for-profit entities related to the assessment of events that may indicate a goodwill impairment. Under the alternative, these entities would only need to consider the existence of goodwill impairment triggering events as of their reporting date. Originally expected to apply only to such entities reporting goodwill (or accounts that would be affected by a goodwill impairment such as retained earnings and net income) on an annual basis, the Board decided to expand the scope to allow the alternative to be used any time these entities report financial information, including interim reports. A final standard is expected in March.
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