Private Company Accounting Alternatives Removed
Impacting the use of private company accounting alternatives, the Financial Accounting Standards Board has issued Accounting Standards Update (ASU) No. 2016-03. The ASU eliminates the effective dates for the following alternatives:
- ASU No. 2014-02, Intangibles—Goodwill and Other (Topic 350).
- ASU No. 2014-03, Derivatives and Hedging (Topic 815).
- ASU No. 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements.
- ASU No. 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination.
ASU No. 2016-03 also waives the preferability assessment for the first time a private entity applies a private company accounting alternative.
The amendments in ASU No. 2016-03 are effective immediately.
Topics: accounting alternatives, Accounting Standards Update "ASU", Business Combinations (Topic 805), Consolidation (Topic 810), Derivatives and Hedging (Topic 815), Intangibles (Topic 350), preferability assessment, Private companies