On January 5, 2017, the FASB issued ASU 2017-011 to clarify the deﬁnition of a business in ASC 805.2 The FASB issued the ASU in response to stakeholder feedback that the deﬁnition of a business in ASC 805 is being applied too broadly. In addition, stakeholders said that analyzing transactions under the current definition is difficult and costly. Concerns about the deﬁnition of a business were among the primary issues raised in connection with the Financial Accounting Foundation’s post-implementation review report on FASB Statement No. 141(R), Business Combinations (codiﬁed in ASC 805). The amendments in the ASU are intended to make application of the guidance more consistent and cost-efﬁcient.
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