FASB Issues ASU to Provide Private Companies and Not-for-Profit Organizations With Accounting Alternative to the Goodwill Triggering Event Assessment

The FASB has issued Accounting Standards Update (ASU) 2021-03, Accounting Alternative for Evaluating Triggering Events. The ASU “provides an accounting alternative expected to reduce the complexity for private companies and not-for-profit organizations when performing the goodwill triggering event evaluation.” Specifically, the ASU “allows private companies and not-for-profit organizations to perform a goodwill triggering event assessment, and any resulting test for goodwill impairment, as of the end of the reporting period, whether the reporting period is an interim or annual period.”

For more information, see press release on the FASB’s Web site.