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Highlights from the FASB’s October 10 meeting

  • FASB meeting Image

Oct 12, 2016

At its October 10, 2016, meeting, the FASB discussed its projects on (1) partial sales or transfers of nonfinancial assets, (2) definition of a business, (3) goodwill impairment, and (4) subsequent accounting for goodwill for public business entities and not-for-profit entities.

Clarifying the scope of ASC 610-20 and accounting for partial sales of nonfinancial assets

The FASB discussed comments received on its proposed ASU Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets and made tentative decisions on scope issues related to (1) common control, (2) nonfinancial assets transferred in the form of a legal entity, (3) transfer of nonfinancial assets or in-substance nonfinancial assets to another party in exchange for assets, and (4) undivided interest. In addition, the Board made tentative decisions about the transition method and effective date. For more in­for­ma­tion, see Deloitte's journal entry as well as the meeting minutes on the FASB’s Web site.

Clarifying the definition of a business

The FASB made tentative decisions about transition and the effective date. For more in­for­ma­tion, see the meeting minutes on the FASB’s Web site.

Accounting for goodwill impairment and subsequent accounting for goodwill for public business entities and not-for-profit entities

The FASB discussed comments received on its proposed ASU Simplifying the Accounting for Goodwill Impairment. The Board made tentative decisions on the impairment test, reporting units with zero or negative carrying amounts, fair value guidance, transition, and effective date. In addition, the Board directed the staff to begin a preballot draft of an ASU for review.

The Board is suspending its project on subsequent accounting for goodwill for public business entities and not-for-profit entities while it evaluates the effectiveness of changes made to the goodwill impairment project. In addition, the Board will monitor the IASB’s related projects on goodwill.

For more in­for­ma­tion, see the meeting minutes on the FASB’s Web site.

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