FASB OKs goodwill alternative for private cos., nonprofits

February 22, 2021

By Michael Cohn, Accounting Today

The Financial Accounting Standards Board approved a tweak to the goodwill rules for private businesses and not-for-profits, giving them more flexibility on when to do impairment assessments of triggering events.

FASB voted to approve the goodwill triggering event alternative during a virtual board meeting last week, giving privately held companies and nonprofit organizations the ability to put off doing an impairment assessment until they have to prepare an annual report, instead of needing to monitor and measure such events throughout the year. Entities won’t be required to provide incremental disclosures as a result of the final amendments that are coming out from FASB.

Continue reading

View all News