Close
Close

ASU 2014-18 codifies private company alternative

[Download the PDF]
This bulletin covers the alternative accounting guidance developed by the Private Company Council that’s codified in ASU 2014-18, Accounting for Identifiable Intangible Assets in a Business Combination – a consensus of the Private Company Council, which allows private companies to elect to no longer recognize certain customer-related intangible assets and noncompetition agreements separately from goodwill. Under the new guidance, only noncompetition agreements and customer-related intangible assets that are not capable of being sold or licensed independently from the other assets of a business may be subsumed into goodwill.