Nonpublic entities are wrestling with unique challenges in preparing their 2021 year-end financial reporting, including addressing the impact of new and evolving challenges generated by COVID-19 and the government’s related response, as well as new accounting pronouncements directly targeting nonpublic entities. Our Viewpoint, titled “Private entities: Preparing for 2021 calendar year-end financial reporting,” is designed to help private companies navigate these challenges.
Complete with direct citations from the FASB’s Codification plus insights gleaned by Grant Thornton professionals, this Viewpoint particularly highlights six new Accounting Standards Updates issued by the FASB in 2021 that directly impact financial reporting for nonpublic entities. Those amendments include
- Revisions to the new leasing guidance;
- A practical expedient for assessing goodwill impairment triggering events and another expedient for determining the current price input of an equity-classified share-based payment award;
- Accounting for contracts with customers acquired in a business combination;
- New disclosure requirements for certain types of government assistance received by businesses; and
- Practical expedients and exceptions from applying modification accounting to contracts modified due to reference rate reform.
In addition, this document covers COVID-19-related year-end financial reporting considerations as well as the AICPA’s newly effective guidance for auditors reporting on “key audit matters.”
Download our Viewpoint here.
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