April 8, 2021
Heads Up — FASB Provides Private Companies and Not-for-Profit Entities With an Accounting Alternative for Evaluating Goodwill Impairment Triggering Events (April 8, 2021)
This issue discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2021-03, Accounting Alternative for Evaluating Triggering Events, which allows private companies and not-for-profit entities (NFPs) to use an accounting alternative for performing the goodwill impairment triggering event evaluation. Specifically, the ASU gives a private company or NFP the option to perform the goodwill impairment triggering event evaluation required by ASC 350-20, as well as any resulting goodwill impairment test, as of the end of the entity’s interim or annual reporting period, as applicable.
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