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Amendments clarify the definition of a ‘business’

This bulletin discusses FASB ASU 2017-01, Clarifying the Definition of a Business, which provides a new framework for entities to determine whether a set of assets and activities is a business. The amendments in the ASU will assist entities in evaluating whether to account for transactions as acquisitions (or disposals) either of businesses or of assets -- an important distinction, considering the significant differences between accounting for business combinations and accounting for asset acquisitions.