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FASB issues ASU on effective date and transition guidance in certain private-company ASUs

  • FASB document Image

Mar 07, 2016

The FASB has issued ASU 2016-03 in response to a consensus reached by the Private Company Council to address concerns raised about the effective date and transition guidance in certain ASUs that apply to private companies.

Specif­i­cally, the ASU:

  • Removes the ef­fec­tive dates from ASUs 2014-02, Ac­count­ing for Good­will; 2014-03, Ac­count­ing for Certain Re­ceive-Vari­able, Pay-Fixed In­ter­est Rate Swaps — Sim­pli­fied Hedge Ac­count­ing Ap­proach; 2014-07, Ap­ply­ing Vari­able In­ter­est En­ti­ties Guid­ance to Common Control Leasing Arrange­ments; and 2014-18, Ac­count­ing for Iden­ti­fi­able In­tan­gi­ble Assets in a Busi­ness Com­bi­na­tion. Thus, these ASUs become ef­fec­tive im­me­di­ately.
  • Contains tran­si­tion pro­vi­sions under which “private com­pa­nies are able to forgo a prefer­abil­ity as­sess­ment the first time they elect the ac­count­ing al­ter­na­tives within [the ASU’s scope].”
  • Extends the tran­si­tion guid­ance in ASUs 2014-02, 2014-03, 2014-07, and 2014-18 in­def­i­nitely.

For more in­for­ma­tion, see Deloitte's related Heads Up as well as the ASU on the FASB’s Web site.

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