Coming soon: Private company exceptions to GAAP – Rules simplified for goodwill and interest rate swaps
Abstract: For years, small companies and their accountants have complained about the increasing complexity and costs of complying with Generally Accepted Accounting Principles (GAAP). In January 2014, FASB released two Accounting Standards Updates (ASUs) that offer private companies alternate reporting methods for goodwill and simple interest rate swaps. This article explains how the alternate methods differ from current GAAP. A sidebar lists a number of “triggering events” that can signal a need for testing goodwill impairment.