Last updated on May 16, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.
(Sections updated on the date above are indicated with an asterisk *)
Objective:The objective of this project is to revisit the subsequent accounting for goodwill and identifiable intangible assets broadly for all entities. This includes considerations for improving the decision usefulness of the information and rebalancing the cost benefit factors.
Background:The Post-Implementation Review of FASB Statement No. 141 (Revised 2007), Business Combinations, issued in 2013 described stakeholders’ concerns about the cost to perform the goodwill impairment test. Since then, the FASB has issued various pieces of guidance to resolve those stakeholders’ concerns. Some of these Updates were applicable to all entities, for example, Accounting Standards Updates No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment, and No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. Others are alternatives for private companies and not-for-profit entities, for example, Accounting Standards Updates No. 2014-02, Intangibles—Goodwill and Other (Topic 3350): Accounting for Goodwill, No. 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination, and No. 2019-06, Intangibles—Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities.
Decisions Reached at Last Meeting (May 4, 2022):
The Board discussed the presentation of goodwill amortization and provided its leanings to present goodwill amortization in the same location as goodwill impairment in the income statement and not in other comprehensive income. The Board directed the staff to continue to evaluate other income statement presentation alternatives. No decisions were made.
Tentative Board Decisions Reached to Date (as of May 4, 2022):
A summary of decisions reached can be found here.
The following are links to the minutes for each meeting. To view Board meetings and handouts from the past 90 days, click here.
|May 4, 2022*||Board Meeting—The Board discussed presentation alternatives for goodwill charges.|
|March 2, 2022||Board Meeting—The Board discussed the accounting for identifiable intangible assets in a business combination and the balances within the scope of the subsequent accounting guidance for goodwill.|
|January 26, 2022||Board Meeting—The Board discussed the level (reporting unit, operating segment) at which the goodwill impairment test should be conducted in the context of a potential impairment-with amortization model.|
|November 17, 2021||Board Meeting—The Board discussed details of the goodwill amortization period, including an overall amortization period estimation principle, a possible list of factors, providing a cap and floor on the amortization period, and the reassessment of an goodwill estimated goodwill amortization period.|
|June 23, 2021||Board Meeting—The Board discussed potential changes to the existing goodwill impairment model.|
|April 7, 2021||Board Meeting—The Board discussed the intangibles in a business combination as well as factors to consider for estimating the useful life of goodwill and a goodwill amortization period cap.|
|December 16, 2020||Board Meeting—The Board discussed the amortization details for an impairment-with-amortization model.|
|November 11, 2020||Board Meeting—The Board discussed the amortization details for an impairment-with-amortization model in an educational session.|
|July 15, 2020||Board Meeting—The Board discussed topics relating to the development of a proposed Update.|
|October 24, 2018||Board Meeting—The Board added the project to the technical agenda and directed the staff to draft an Invitation to Comment.|
Supervising Project Manager
Postgraduate Technical Assistant
Postgraduate Technical Assistant
The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.