May 13, 2021

The Small Business Advisory Committee (SBAC) met virtually on May 13, 2021. At the meeting, the SBAC members provided input on the following topics:
  • Disclosure of Supplier Finance Programs Involving Trade Payables
    SBAC members shared their observation that they do not often see small public companies acting as the buyer in a supplier finance program, and that it is more common for a small public company to act as the supplier. A few members supported additional disclosure that would help identify the use of the supplier finance program by a buyer entity. Another member commented on the cost, materiality, and scope considerations related to such disclosure.
  • Improving the Accounting for Asset Acquisitions and Business Combinations
    SBAC members provided feedback on the costs that are involved with determining the fair value of contingent consideration at the acquisition date. Members commented that contingent consideration arrangements require external valuations that are often only used for financial reporting purposes. Members also expressed a preference for disclosures that focus more on the verifiable inputs to the valuation, such as a description of the payment triggers and possible payments.
  • Identifiable Intangible Assets and Subsequent Accounting for Goodwill
    SBAC members expressed a preference for a default 10-year period to amortize goodwill to reduce the potential cost and complexity of having to estimate the useful life of goodwill. Members also commented that an impairment-with-amortization model that results in fewer impairments would be an improvement and could provide more decision-useful information than the current impairment-only model. For disclosures, members expressed an interest in qualitative information around the unit at which goodwill is tested.
For more information about the SBAC, please visit the FASB website.


SBAC Meeting Recaps are provided for those interested in following the activities of the SBAC. Official positions of the SBAC are reached only after extensive due process & deliberations. More details on the SBAC’s input on the FASB’s projects can be found within the meeting minutes, which will be published on the FASB website in the coming weeks.