GAAP Updates to Accounting for Goodwill and Interest Rate Swaps– January 29, 2014 by Jami Blake

On January 16, 2014, the Financial Accounting Standards Board (FASB) issued two updates to existing generally accepted accounting principles (GAAP). The updates are specific to private companies and provide alternatives for accounting in the areas of goodwill and interest rate swaps. Both alternatives will be effective for annual periods beginning after December 15, 2014, and interim periods beginning after December 15, 2015. However, early adoption is permitted for both alternatives; and, if chosen, may impact financial statements being issued for the 2013 year.

These standards are yet another way FASB is attempting to address the needs of private companies, particularly to simplify the process and minimize the costs associated with the complexity of complying under current GAAP. As these standards were just recently released, there are still many questions about and nuances to applying them. And, of course, circumstances can vary significantly fromclient to client. If you are interested in learning more about the new updates, potentially for your 2013 reports, contact Jami Blake at jblake@cohencpa.com or a member of your service team.

Read the in-depth “FASB in Focus” article to learn what FASB has to say.

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