IASB reviews accounting for goodwill
20 March 2020
On Thursday 19 March 2020, the IASB published for public comment Discussion Paper DP/2020/1 on Business Combinations – Disclosures, Goodwill and Impairment. Comments can be submitted to the IASB until 15 September 2020.
The IASB’s preliminary view is that it should retain the impairment-only approach to accounting for goodwill and develop proposals to improve disclosures about acquisitions. The IASB accepts that both the impairment-only and amortisation models for accounting for goodwill have limitations. The IASB’s preliminary view is that there is no compelling evidence to justify changing accounting for goodwill and the costs that such a change would entail. This Discussion Paper provides stakeholders with an opportunity to explain whether they agree with that preliminary view.
The proposals result from the IASB’s post-implementation review of IFRS 3 Business Combinations (Report and Feedback statement published June 2015).
The IASB’s Discussion Paper is available on the IASB’s website here
The FRC encourages stakeholders to respond to the IASB proposals.