FASB recently voted to provide private companies and not-for-profits with an alternative to the requirement to monitor and evaluate goodwill impairment triggering events throughout the fiscal year and potentially measure a goodwill impairment at the date of triggering events.
The accounting alternative allows private companies and not-for-profits the option to perform goodwill impairment triggering event assessments at the reporting date any time they report financial information, including interim reports.
FASB’s tweaks expand the scope described in Proposed Accounting Standards Update, Intangibles — Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events for private companies and not-for-profits that report goodwill only on an annual basis. Read more.