AICPA seeks input on Goodwill Impairment Practice Aid
FASB first introduced the concept of “step zero” under its Accounting Standards Update 2011-08, published last September, by which entities may review certain qualitative factors to determine whether goodwill impairment is “more likely than not,” explained Mark Zyla (Acuitas Inc.) during last week’s BVR webinar on the topic. If so, then ASU 2011-88 permits entities to skip the [...]
Six FASB proposals related to business valuation await comment in 1Q2012
The following six exposure documents from the FASB are now open for public comment—and all with deadlines before the close of the first quarter, 2012: Proposed Accounting Standards Update—Consolidation (Topic 810): Parent’s Accounting for the Cumulative Translation Adjustment upon the Sale or Transfer of a Group of Assets that Is a Nonprofit Activity or a [...]
Majority of companies will ‘go it alone’ on goodwill impairment
Is there a role for the independent valuation specialist under the FASB’s new “qualitative” option for assessing goodwill impairment? That was a hot topic of discussion at the third annual Fair Value Summit sponsored by the ASA San Francisco earlier this month. “We’re hearing that a great number of clients are electing to ‘go it [...]
FASB announces effective date for goodwill impairment update
Just two weeks ago, the FASB issued Accounting Standards Update No. 2011-08,Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. More recently, the FASB announced that the amendments in this update will be effective “for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.” Early adoption is permitted, the FASB [...]
FASB adds new initiative on impairment of intangibles
After the FASB received feedback on its proposed standards for testing goodwill impairment project, it added a new project on the impairment of intangible assets with indefinite lives, reports Michael Conn in Accounting Today. “The new project’s scope is to simplify the manner in which an entity tests other indefinite-lived intangible assets for impairment,” Conn reports. The FASB [...]
FASB ‘simplifies’ impairment testing
Last Wednesday the Financial Accounting Standards Board (FASB) approved a revised accounting standard that’s intended to simplify how an entity tests goodwill impairment. BVWire asked Brad Pursel (Brown Smith Wallace) to comment: The 72 comment letters submitted to FASB regarding the April 2011 exposure draft reveal two common elements: 1) reducing costs for financial statement [...]
FASB “simplifies” impairment testing
On Wednesday, the Financial Accounting Standards Board (FASB) approved a revised accounting standard intended to simplify how an entity tests goodwill for impairment. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not [...]
FASB moves another step forward with private company financial statement standards project
FASB just published their preliminary staff findings on potential improvements in standards for private company financials in FASB in Focus: Private Companies: The Path to a Differential Standard-Setting Framework. The FEI Financial Reporting Blog, one of the best sources for objective commentary on the FASB’s actions, offers this insight: “The FAF has thus far received over 1,100 [...]
Expect even more valuation disclosures under Topic 820, King predicts
Last week FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. BVWire asked Al King (Marshall & Stevens) to comment on the changes: Much of this is new release is just housekeeping between GAAP and IFRS. What’s [...]
FASB amends ASC 820 today
This just in: FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs today. The amendments are effective for public entities for interim and annual periods beginning after December 15, 2011, and should be applied prospectively. Early adoption [...]
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