The International Accounting Standards Board (Board) is discussing feedback on the Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment, which was published in March 2020. The Discussion Paper sets out the Board’s preliminary views on how companies can provide better information so that investors can hold companies to account for acquisitions of other companies. The preliminary views focus on disclosure of information and on accounting for goodwill.
The Board will consider the project’s direction at a future meeting.
The Board met on 20 July 2021 to redeliberate its preliminary views on the subsequent accounting for goodwill, and in particular whether to reintroduce amortisation of goodwill.
As part of its redeliberation on whether to reintroduce amortisation of goodwill, the Board discussed disclosures about business combinations and improving the effectiveness of the impairment test in IAS 36 Impairment of Assets.
The Board was not asked to make any decisions.