FASB Issues Proposed ASU on Alternative Goodwill Triggering Event Assessment for Private Companies

The FASB has issued a proposed Accounting Standards Update (ASU), Accounting Alternative for Evaluating Triggering Events. The proposed amendments would “introduce an accounting alternative that would allow private companies and not-for-profit organizations that only report goodwill (or accounts that would be affected by a goodwill impairment such as retained earnings and net income) on an annual basis to perform a goodwill triggering event assessment, and any resulting test for goodwill impairment, on the annual reporting date only.”

Comments on the proposed ASU are due by January 20, 2021. For more information, see the press release on the FASB’s Web site.

The FASB staff recently issued proposed Taxonomy improvements for the proposed ASU.