On January 5, 2017, the FASB issued Accounting Standards Update (ASU) 2017-01 to clarify the definition of a business.
It provides guidance that will enable more consistency in accounting for transactions when determining if they represent acquisitions or disposals of assets or of a business. It is effective for public entities for periods beginning after December 15, 2017 and one year later for nonpublic entities.
When does (ASU) 2017-01 become testable on the CPA Exam?
With an issue date of January 2017 and an earliest effective date of December 2017, this pronouncement becomes testable on the exam starting January 2018.