Goodwill research project

The UK Endorsement Board has commenced a research project to analyse the potential impact of reintroducing amortisation for the subsequent measurement of goodwill.

The project will provide UK-specific information to the IASB during its redeliberations on its Discussion Paper 2020/1 Business Combinations: Disclosures, Goodwill and Impairment.

The project will explore:

• How a hybrid model for subsequent measurement of goodwill, i.e. an annual amortisation charge supported by impairment testing, can provide information that is useful for users.
• How transitioning to such a hybrid model might affect the financial position of a group or company, including impact on debt covenants, and legal and regulatory requirements.
• Potential approaches to estimating the useful life of goodwill for amortisation purposes.
• Transitional arrangements and cost implications.

For more information on the UKEB project, visit our web page.

To take part in our outreach on this project, please email [email protected]