A Closer Look at FASB’s Latest ASU
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Chicago and New York—The Financial Accounting Standards Board (FASB) published an Accounting Standards Update (ASU) on Jan. 5 to clarify the definition of a business. More precisely, the new regulation helps companies and other organization determine more easily whether the purchase (or sale) of an asset or group of assets qualifies as the purchase (or disposal) of a business.
The update requires investors to capitalize acquisition costs for an asset acquisition, whereas for business combinations, these costs are expensed immediately. Julie Valpey and Brandon Landas, assurance partners in BDO’s National Security Exchange Commission (SEC) Department, explain the practical side of this new guidance and its effects on real estate transactions…
