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Private Companies Could Get Another Goodwill Accounting Break

Dec. 21, 2020, 5:50 PM

Private companies could get a break from one of the more complex parts of accounting for goodwill.

The Financial Accounting Standards Board on Monday released a proposal that would allow privately held companies and not-for-profit organizations to test for goodwill impairment only when they close their books at year-end, when they typically issue their annual financial statements. If finalized, the move would be welcome news to companies that experienced coronavirus-related turmoil early in the pandemic but ended the year in the clear.

“For the companies that April was just a lot of uncertainty but come December, everything has kind of ...