FASB Accounting Summary

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Under FASB accounting framework, private organizations are allowed to amortize goodwill only for book purpose. Previously, FASB enacted the policy to amortize goodwill over 40 years, then it was changed and goodwill cannot be amortized at all by companies. However, under this no-amortizing policy, it was specified that the goodwill has to be examined annually for impairment by companies. Under GAAP, private companies can report goodwill in their financial statement till the time they are not being presented for issuance.
However, private entities should carefully identify the decision regarding the acquisition or merger of the business in the future. In this situation, private organizations are required to discontinue the election that eventually

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