Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Private Company Goodwill Accounting Break Heads to Finish Line

Feb. 10, 2021, 5:57 PM

Private companies that took financial hits in the early days of the pandemic but recovered by year-end are on track to get a break on accounting for the value of their goodwill.

The Financial Accounting Standards Board on Wednesday approved a break that would let private companies and not-for-profit groups only test for goodwill impairment when they close their books, instead of at points in the year when there are impairment indicators but they don’t have to draw up financial statements.

Goodwill is an intangible asset that gets recorded when one company or organization buys another. It represents the ...