In May 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2019-06, Intangibles - Goodwill and Other, Business Combinations and Not-for-Profit Entities (ASU No. 2019-06).
The issuance of ASU No. 2019-06 allows not-for-profit entities to elect the Private Company Council's (PCC) alternatives on accounting for goodwill and identifiable intangible assets in a business combination. The goal to expand the PCC accounting alternative to not-for-profit entities is to provide the same cost benefit that private companies receive related to the simplified accounting alternative surrounding business combinations.
The accounting alternative allows not-for-profit entities to amortize goodwill over ten years or less on a straight-line basis, only test for impairment when a triggering event occurs, and have the option to test for impairment at the entity level. The entity also has the option to subsume certain customer-related and other intangible assets into goodwill which must be amortized.
The effective date for the provisions of ASU No. 2019-06 is immediately.
You're Invited! Annual Not-For-Profit Accounting Update
Thursday, September 26, 2019
Hosted at Detroit Historical Museum
Save The Date!
Middle Market Manufacturing Outlook
Wednesday, October 23
Hosted at the Detriot Athletic Club
7:30 AM - 11:30 AM