LONDON - The International Accounting Standards Board (IASB) 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.
The Board is investigating possible improvements to IFRS 3 Business Combinations and IAS 36 Impairment of Assets after feedback from the Post-implementation Review of IFRS 3.
The Board has decided its preliminary views for inclusion in a discussion paper, which is now being drafted.
The Board plans to publish the discussion paper in February 2020.
