The Private Company Council (PCC) continues to make progress on simplifying accounting for intangible assets acquired in a business combination.
The Private Company Council (PCC) continued to deliberate the accounting alternative for the recognition of intangible assets in a business combination, but asked the FASB staff to perform additional research related to the scope of the alternative. Based on deliberations to date, the alternative would allow a private company, at its option, to not separately recognize a non-compete agreement as an intangible asset. In addition, customer-related intangibles would only be recognized if they are capable of being sold or licensed independently from other assets of a business. An entity would likely be required to qualitatively disclose the nature of the intangible assets that are not separately recognized from goodwill under the alternative.