Business Combinations—Disclosures, Goodwill and Impairment
- Discussion paper consultation
- Isabel Batista, Galina Borisova, Ricardo Torres Ruiz-Olivares, Rasmus Sommer, Joachim Jacobs, Almudena Alcala
- 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
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.