Chapter 12, Problem 3BCC

Basis for Conclusions Case 3: Goodwill Impairment for Private Companies

FASB issued ASU 2014-02 in January 2014 to allow private companies an alternative to testing goodwill for impairment.

1. 1. Please provide a discussion of why FASB issued the standard.
2. 2. What are the primary differences in this standard for private companies and the accounting for goodwill impairments for public companies?
3. 3. Explain why FASB chose to allow each of these differences.