ASU 2016-03 — Intangibles—Goodwill and Other (Topic 350); Business Combinations (Topic 805); Consolidation (Topic 810); Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance

The amendments in this Update address the concerns of private company stakeholders about the required assessment of preferability when electing a private company accounting alternative for the first time after its effective date. Those stakeholders were concerned about scenarios in which it may be suboptimal for a private company to elect the alternative by its effective date because of the private company's facts and circumstances or because it was unaware of the alternative until after the effective date. Stakeholders were also concerned about whether private companies were benefiting from the favorable transition provisions provided in other Updates when a private company voluntarily elects an alternative in those Update after its effective date.

The amendments in this Update resolve stakeholders' concerns by making the guidance in Updates 2014-02, 2014-03, 2014-07, and 2014-18 effective immediately by removing their effective dates. The amendments in this Update also extend the transition guidance in those Updates indefinitely.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update PCC-15-01—Intangibles—Goodwill and Other (Topic 350), Business Combinations (Topic 805), Consolidation (Topic 810), and Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance, which has been deleted.

For more information, see the following:

Issued: March 7, 2016