Simplifying Accounting for Intangible Assets Acquired in a Business Combination
The Financial Accounting Standards Board ended 2014 by issuing a fourth accounting alternative available to private companies that allows them to simplify their accounting by recognizing fewer intangible assets in a business combination. Private companies making an accounting policy election to apply the accounting alternative under Accounting Standards Update No. 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination, may exclude certain intangible assets from separate recognition in a business combination. The alternative is available to all entities except public business entities and not-for-profit entities.