Business Combinations—Disclosures, Goodwill and Impairment
- Discussion paper consultation
- Kathrin Schoene
- Objective A - Exploring whether to simplify the accounting for goodwill by permitting an indicator-only approach to determine when an impairment test is required; and/or reintroducing amortisation of goodwill;
- Objective B - Exploring whether to improve the calculation of value in use by permitting cash flow projections to include future restructurings and future enhancements to an asset; and the use of post-tax inputs in the calculation of value in use; and
- Objective C - Identifying disclosures to enable investors to assess management's rationale for the business combination; and whether the subsequent performance of the acquired business, or combined business, meets expectations set at the acquisition date.
On 29 May 2020, EFRAG has published its draft comment letter in response to the IASB's DP 2020/1 Business Combinations—Disclosures, Goodwill and Impairment and seeks constituents' views on the proposals. Comments on the draft comment letter are requested by 30 November 2020.
Publications open for comments
11/09/2020 - Your opinion matters – Questionnaire for preparers – How could accounting for goodwill be improved?
EFRAG launches a questionnaire/invitation for an interview for preparers with active M&A agendas or material goodwill amounts in the financial statements. The purpose is to collect input on the proposals in the Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment and on EFRAG’s suggestions included in its draft comment letter.
29/05/2020 - EFRAG Draft Comment Letter on IASB DP 'Business Combinations — Disclosures, Goodwill and Impairment'
EFRAG has published its Draft Comment Letter in response to the IASB's Discussion Paper DP/2020/1 Business Combinations—Disclosures, Goodwill and Impairment. Comments on the draft comment letter are requested by 30 November 2020.