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. On October 24, 2018, the Board decided to add to its technical agenda a broad project to revisit the subsequent accounting for goodwill and the accounting for certain identifiable intangible assets. On July 9, 2019, the staff issued an Invitation to Comment, Identifiable Intangible Assets and Subsequent Accounting for Goodwill, to obtain formal input from stakeholders focusing on public business entities on the subsequent accounting for goodwill, the accounting for certain identifiable intangible assets, and the scope of the project on those topics. The Board provided a 90-day comment period with comments due by October 7, 2019. On November 15, 2019, the Board hosted public roundtable meetings to discuss the topics included in the July 2019 Invitation to Comment. To view minutes from the public roundtable meetings, click here.

On July 9, 2019, the staff issued an Invitation to Comment, Identifiable Intangible Assets and Subsequent Accounting for Goodwill, to obtain formal input from stakeholders focusing on public business entities on the subsequent accounting for goodwill, the accounting for certain identifiable intangible assets, and the scope of the project on those topics. The Board provided a 90-day comment period with comments due by October 7, 2019.

• Read the Invitation to Comment, Identifiable Intangible Assets and Subsequent Accounting for Goodwill
• Read comment letters on the Invitation to Comment
• Read summary of comment letters on the Invitation to Comment

There are no media releases or educational materials at this time.

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 Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

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.

The staff will continue to research and perform outreach based on the general direction discussed by the Board. Topics yet to be discussed include consequential disclosures, and transition. The staff will present this research for the Board’s consideration at future meetings.

Joy Sy
Supervising Project Manager
jsy@fasb.org

Julie Um
Project Manager
jcum@fasb.org
 
Sallie Bishop
Practice Fellow
sbishop@fasb.org
 
Carolyn Warger
Practice Fellow
cwarger@fasb.org

Emily Frederick
Postgraduate Technical Assistant
efrederick@fasb.org

Lea Rocco
Postgraduate Technical Assistant
lrocco@fasb.org