Industry Insights

New Business Definition

January 2017

Executive Summary

The Financial Accounting Standards Board (FASB) issued a new final standard that narrows the definition of a business. Under the new guidance, fewer transactions will be recorded as business acquisitions. These amendments will have the greatest effect on real estate transactions and loan portfolio acquisitions.

Early adoption is permitted before the standard’s issuance or effective date for transactions that have not been reported in financial statements that have been issued or made available for issuance.

As you begin to prepare 2016 financial statements, consider if early adoption makes sense for your organization.


BKD LinkedIn BKD Twitter BKD Youtube BKD Google Plus