June 8, 2017
Business & Industry Insights
On this episode of A&M Conversation With, Valuation Services, Senior Directors Brent Sloan and Robert Pay discuss the election of accounting alternatives for intangible assets acquired in business combinations and subsequent goodwill impairment testing. How do you avoid potentially severe costs and inconvenience of having to restate your financials when accounting alternative elections have been made?
The combined impact of the Private Company Council’s (PCC) Accounting Alternatives is a significant simplification in compliance under ASC 805 and 350 under U.S. GAAP
- Such elections will reduce the level of effort and cost of compliance for private companies
- Fewer assets will be identified, recognized and valued at the transaction date
- Fewer goodwill impairment tests will likely be required
However, if a private entity chooses this accounting alternative, the private entity will have to remain with it for all future transactions. Brent explains the impact of the election.
For more information the importance of electing the right accounting alternative, click here.
This extract is based on a talk by Brent Sloan at AICPA Engage June 12-15, 2017