Charles Sapnas Featured in Accounting Today: FASB Clarifies Definition of a Business

By: Charles Sapnas

Charles Sapnas, CFA, ASA, senior vice president in Valuation Research Corporation’s (VRC) Princeton office was featured in Accounting Today discussing the significance of the recent accounting standards update that clarifies the definition of a business.

The Financial Accounting Standards Board’s Accounting Standards Update 2017-01 “Business Combinations (Topic 805): Clarifying the Definition of a Business,” is intended to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or as businesses. Sapnas states, “The distinction between an asset purchase and a business combination can make a difference to a company’s financial reporting.”

The article also includes highlights of the two main thresholds used to determine if an entity is a business and timing for adoption of the new guidance for public business entities.

A copy of the article is available on the Accounting Today website.