Ask the Advisor – Q: Will the new reporting method for goodwill affect my company’s merger?

Description

Abstract: The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update that provides private companies with an alternate method of reporting goodwill under Generally Accepted Accounting Principles. Adopting FASB’s standard could reduce the cost and complexity of preparing financial statements. But as this column suggests, the alternate method may prove troublesome if a private business is subsequently acquired by a public company.