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Private Companies, Nonprofits Get Goodwill Accounting Break

March 30, 2021, 3:13 PM

Private companies and nonprofit organizations that experienced financial hardship in the early days of the pandemic but then bounced back got an accounting break on goodwill assessments.

The Financial Accounting Standards Board on Tuesday published an update to U.S. accounting rules that would let private companies and not-for-profit groups only test for goodwill impairment when they close their books, instead of when they see signs that the intangible asset has lost value. The result: Organizations can avoid out-of-period hits to net income if they are in good shape by the time they draw up their financial statements.

  • U.S. rules require ...