FASB Simplifies Guidance for Testing Goodwill for Impairment
The FASB has approved changes that will simplify the rules for testing goodwill for impairment. Goodwill impairment occurs when the implied fair value of goodwill in a company’s reporting unit declines to an amount that is less than its carrying amount. http://www.fasb.org/cs/ContentServer?site=FASB&c=Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176158831995
Private Companies: The Path to a Differential Standard-Setting Framework
The FASB staff recently completed an initial assessment of the differences in the way that private company financial statements are used by lenders, investors and others. This article describes the staff’s findings, which will assist the Board in developing a new framework for deciding when and how to modify specific U.S. GAAP accounting standards for private company use.