PwC has responded to a FASB proposal that would extend the Private Company accounting alternatives for goodwill and certain identifiable intangible assets to not-for-profit (NFP) entities. NFPs would then be permitted to amortize goodwill over a life of 10 years or less. An NFP entity would also be able to elect to subsume into goodwill certain customer-related intangible assets and all non-compete agreements in future acquisitions. PwC agrees with extending the goodwill alternative to NFPs but expressed concerns on extending the alternative for certain identifiable intangible assets to NFPs due to the unique nature of the NFP acquisition model.
© 2016 - 2020 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.