Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

Learn more

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Learn more

FASB clarifies the definition of a business

Defining Issues | January 2017

The ASU sets out a new framework for classifying transactions as acquisitions (disposals) of assets vs. businesses.

Two African American women standing near pillared building entrance

KPMG reports on ASU 2017-01, which revises ASC 805 as part of FASB’s definition of a business project.


ASU 2017-01

  • A company with acquisition or disposal transactions

Relevant dates

Mandatory effective dates and early adoption provisions:

Effective dates

Mandatory effective dates and early adoption provisions:

Effective date :

Public business entities and certain not-for-profit entities

All other entities

Annual periods – Fiscal years beginning after

Dec. 15, 2017

Dec. 15, 2018

Interim periods – In fiscal years beginning after

Dec. 15, 2017

Dec. 15, 2019

Early adoption allowed?

Yes – immediately for transactions that have not been reported in financial statements that have been issued or made available for issuance.

Key Impacts:

  • An integrated set of activities and assets (a set) is a business if it has, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs
  • ASU 2017-01 creates a 2-step method in assessing whether a transaction is an acquisition/disposal of assets or a business
  • Fewer transactions are expected to involve acquiring or selling a business
  • Real estate and life science industries will likely be most affected

Report contents

  • Why does the definition of a business matter?
  • Examples that illustrate the definition
  • Effective dates and transition
  • FASB’s next steps

Download the document:

FASB clarifies definition of a business

Download PDF

Explore more

Accounting Research Online

Access our accounting research website for additional resources for your financial reporting needs.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.