Year-end wrap-up of 2014 accounting standards for private firms

BVWireIssue #147-3
December 17, 2014

PwC has issued a special year-end edition of its Private Company Reporter that provides a quick summary for select accounting standards that could affect 2014 financial statements of private firms.

Some of these standards are effective for calendar year-end companies for 2014, such as new presentation and disclosure for other comprehensive income (OCI) and pushdown accounting. Other standards are not effective until later but are available for early adoption in 2014, such as the simplified goodwill accounting alternative, the going-concern assessment, and the simplified intangible assets alternative.

Valuation experts need to be aware of these standards and their potential impact on any related analysis. For example, the revised standard for reporting discontinued operations (available for 2014 adoption) will result in fewer disposals presented as discontinued operations. This “may distort continuing financial trends and operating results,” says the PwC report.

Extra: The FASB may delay the 2017 effective date of the revenue recognition rules. Companies say they need more time to implement the sweeping changes, according to WSJ Online.

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