FASB Proposals Simplify Intangible Assets Reviewed by Momizat on . [caption id="attachment_12924" align="aligncenter" width="640"] Accounting Standards[/caption] Recently, the FASB issued exposure drafts of Accounting Standards [caption id="attachment_12924" align="aligncenter" width="640"] Accounting Standards[/caption] Recently, the FASB issued exposure drafts of Accounting Standards Rating: 0
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FASB Proposals Simplify Intangible Assets

Accounting Standards

Accounting Standards

Recently, the FASB issued exposure drafts of Accounting Standards Updates (ASUs) which propose reductions in the cost and complexity of accounting for intangible assets acquired by private companies, as well as subsequent testing for goodwill impairment.  The proposed changes in the drafts involve alterations to Accounting Standards Codification (ASC) Topic 85, Business Combinations, and Topic 350, Intanbigles—Goodwill and other.  

Among the suggested changes to Topic 85 is the proposal that a company involved in a business combination may elect (but would not be required) to recognize only the acquired intangible assets that are the direct result of contractual rights with non-cancelable terms or other legal rights.  In doing so, a private company would not recognize an intangible asset that was the product of a transferable or separable criteria recognition.    With regard to Topic 350, proposed changes include amortizing goodwill over the useful life of the entity’s primary long-lived asset, not to exceed 10 years.  For complete details on the proposals, read Mark L. Zyla’s breakdown on the AICPA website.

The National Association of Certified Valuators and Analysts (NACVA) supports the users of business and intangible asset valuation services and financial forensic services, including damages determinations of all kinds and fraud detection and prevention, by training and certifying financial professionals in these disciplines.

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