One of the initiatives of the Private Company Council $($PCC$)$ is to identify accounting alternatives within GAAP to address the needs of private companies. One such issue researched by the PCC was the accounting treatment for goodwill. Goodwill is an asset that is recognized when a company purchases another company and receives benefits that are not individually identifiable. $($Goodwill is discussed in more detail in Chapter $13.)$ Generally speaking, goodwill is not amortized. However, based on recommendations by the PCC and approved by the FASB, private companies are allowed the option for an alternative accounting treatment. This alternative accounting treatment for private companies is included in the Codification