United States

Simplified accounting alternatives for private companies


In 2014, the Financial Accounting Standards Board (FASB) started issuing Accounting Standards Updates (ASUs) that provide simplified accounting alternatives for some or all private companies. These accounting alternatives reflect decisions reached by the Private Company Council (PCC) and endorsed by the FASB. The following is a list of the ASUs issued thus far with private company accounting alternatives:



RSM summary

ASU 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill

Jan. 16, 2014

Simplified accounting for private companies: Goodwill

ASU 2014-03, Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps—Simplified Hedge Accounting Approach

Jan. 16, 2014

Simplified accounting for private companies: Certain interest rate swaps

ASU 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements

Mar. 20, 2014

Simplified accounting for private companies: Common control leases

ASU 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination

Dec. 23, 2014

Simplified accounting for private companies: Certain intangible assets


The RSM summaries discuss the fundamentals of the accounting alternative, who can apply it, the related disclosure requirements, effective date and transition provisions as well as the factors a private company should consider before electing an accounting alternative.

For additional information about the accounting alternatives and assistance in the evaluation of your specific facts and circumstances, contact your RSM professional.