The Financial Accounting Standards Board has voted to endorse the first two accounting standards previously approved by the Private Company Council (PCC). The final standards will provide private companies with: (1) an alternative accounting model for goodwill; and (2) a simplified hedge accounting approach for qualifying interest rate swaps. The goodwill alternative, Accounting for Goodwill Subsequent to a Business Combination, allows a private company to amortize goodwill over a period of 10 years, or less under certain circumstances, and to apply a simplified impairment model to goodwill.

Also, the FASB voted to add a project to its technical agenda to consider alternatives to the existing goodwill impairment model for public companies and not-for-profit entities. These alternatives include an amortization model, a simplified impairment model without amortization, or a direct write-off of goodwill.