FASB extends GAAP alternatives to not-for-profits

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FASB extends GAAP alternatives to not-for-profits

Notforprofit financial statement preparers will be able to take advantage of two GAAP alternatives that FASB originally developed for private companies.

FASB recently issued a standard that will make notforprofits eligible for the private company alternatives on accounting for goodwill and accounting for identifiable intangible assets in a business combination.

The alternatives for private companies were issued in 2014 as a result of work that originated with the Private Company Council. The new standard will enable notforprofits to recognize fewer items as separate intangible assets in acquisitions and to account for goodwill in a more costeffective manner. This can make accounting less complicated and less costly for notforprofits.

The amendments took effect upon the issuance of the standard, and notforprofits have the same openended effective date and unconditional onetime election that private companies have.

Research & References of FASB extends GAAP alternatives to not-for-profits|A&C Accounting And Tax Services
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FASB extends GAAP alternatives to not-for-profits

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