Challenging questions
The Discussion Paper investigates challenging questions, such as how companies should account for goodwill after the business combination.
It also investigates whether:
- there are simplifications that can be made to the current impairment tests; and
- additional information should be disclosed about the performance of an acquisition in the post-combination period.
Preliminary views
The IASB’s preliminary views presented in the Discussion Paper include the following:
- Better disclosures about business combinations should be required.
- The impairment test cannot be made more effective.
- Amortization of goodwill should not be reintroduced.
- A requirement to present total equity before goodwill should be introduced.
- Relief from the mandatory annual quantitative impairment test should be provided.
- Improvements to the value in use calculation should be introduced.
- Identifiable intangible assets should continue to be recognized separately from goodwill.
Have your say
Have your say on this Discussion Paper’s proposals through the following opportunities:
- Respond directly to the IASB on this Discussion Paper by December 31, 2020.
- Stay tuned! The AcSB will be hosting virtual roundtables in July and September 2020.
We value your input and look forward to your feedback on this Discussion Paper.
The AcSB considers your comments prior to finalizing its comment letter. We also share Canadian feedback with the IASB through our involvement in international activities.
We therefore also encourage you to share your views directly with the AcSB.
Stay informed
Follow the AcSB’s project page for updates.