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The amendments in this update extend the private company alternatives from Topic 350 (ASU 2014-02) and Topic 805 (ASU 2014-18) to not-for-profit entities.

A not-for-profit entity that elects the alternative in Topic 350 will amortize goodwill on a straight-line basis over 10 years, or less than 10 years if the entity can establish that a shorter life is more appropriate.

The entity is also required to make an accounting policy election to test for goodwill impairment at either the entity level or the reporting unit level when a triggering event occurs that indicates the fair value of the entity (or a reporting unit) may be below its carrying amount.

For acquisition transactions occurring after adoption of the alternative in Topic 805, a not-for-profit entity should subsume into goodwill and amortize customer-related intangible assets that are not capable of being sold or licensed independently, including all noncompetition agreements acquired.