IASB launches research project on goodwill and impairment
Released 10 September 2019
The International Accounting Standards Board (Board) is carrying out a research project on goodwill and impairment following its Post-implementation Review of IFRS 3 Business Combinations.
The Board is investigating how companies can provide users of financial statements with better information about mergers and acquisitions (business combinations) at a reasonable cost. This investigation includes the challenging question of how companies should account for goodwill after the business combination.
IFRS 3 was developed in a joint project with the US Financial Accounting Standards Board (FASB) and is converged in many respects with US GAAP on this topic. In July 2019 the FASB issued an Invitation to Comment on the accounting for some intangible assets acquired in a business combination and the subsequent accounting for goodwill. The Invitation to Comment includes several topics that will also be covered in the Board’s own discussion paper. The Board and the FASB have been monitoring each other’s projects. The Invitation to Comment is a FASB staff document and does not express any preliminary views of the FASB. Comments are due by 7 October 2019.