Focus on Accounting Standards:
FASB Votes To Issue An Accounting Alternative Related To Goodwill And The Evaluation Of Triggering Events
As reported in the tentative decisions from its February 10, 2021 meeting, the FASB recently voted to provide private companies and not-for-profit entities with the option to perform the identification and evaluation of a triggering event for goodwill impairment at the reporting date. Because this decision is currently considered tentative, the described alternative will not be available for entities to use until the issuance of a final Accounting Standards Update.
In addition to using this new guidance at year-end, entities will be able to utilize the new guidance any time financial statements are issued which includes interim periods. This represents an improvement from the original proposal which would have only allowed entities that reported financial information on an annual basis to utilize the alternative.