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    Transition Related to FASB Statement No. 164, Not-for-Profit Entities:

Mergers and Acquisitions

350-10-65-1 The following represents the transition and effective date information related to FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions:

a.

b.

The pending content that links to this paragraph shall be applied by not- for-profit entities (NFPs) prospectively in the first set of initial or annual financial statements for a reporting period beginning on or after December 15, 2009. [FAS 164, paragraph 93, sequence 93.1] The following guidance applies to goodwill that arose from acquisitions whose dates preceded the application of the pending content: [FAS 164, paragraph 94, sequence 94]

1.

2.

An NFP that is predominantly supported by contributions and returns on investments shall write off previously recognized goodwill by a separate charge in the statement of activities for the effect of the accounting change. [FAS 164, paragraph 95, sequence 95] An NFP that is not predominantly supported by contributions and returns on investments shall establish its reporting units [FAS 164, paragraph 96, sequence 96.1] and subject previously recognized goodwill in each reporting unit to the transitional impairment evaluation required by performing the following steps: [FAS 164, paragraph 97, sequence 97.1]

i.

ii.

iii.

At the date the pending content that links to this paragraph is initially applied, an NFP shall establish its reporting units on the basis of its reporting structure at that date and the guidance in paragraphs 350-20-35-33 through 35-38. [FAS 164, paragraph 96, sequence 96.1.1] That guidance sometimes may result in a single reporting unit for the entire entity. [FAS 164, paragraph 96, sequence 96.2] Recognized net assets, excluding goodwill, shall be assigned to those reporting units using the guidance in paragraphs 350- 20-35-39 through 35-40. Recognized assets and liabilities that do not relate to a reporting unit, such as an environmental liability for an operation previously disposed of, need not be assigned to a reporting unit. [FAS 164, paragraph 96, sequence 96.1.2] All goodwill recognized in an entity’s statement of financial position at the date this guidance is initially applied shall be

assigned assigned

to

one

in

a

or more reporting units. Goodwill shall be reasonable and supportable manner. The

sources of previously recognized goodwill shall in making that initial assignment as well as the to which the related acquired net assets were

be considered reporting units assigned. The

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