Global Standards for the world economy

Wednesday 13 November 2019

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Project News


The Board met on 21 April 2016 to discuss the Goodwill and Impairment project

 25 April 2016


This project responds to some of the findings from the Board's Post-implementation Review of IFRS 3 Business Combinations.

At this meeting the Board continued its discussion from its March meeting about a possible modification to the impairment test to address investors’ concerns about the late recognition of impairment losses and the overstatement of goodwill.

No decisions were made.

Next steps

The Board will continue its discussions of this project at future meetings. Those discussions are expected to include consideration of quantitative information about the amounts and trends of reported goodwill, impairment and intangible assets over recent years, gathered in conjunction with staff at the Accounting Standards Board of Japan (ASBJ), the European Financial Reporting Advisory Group (EFRAG) and the US Financial Accounting Standards Board (FASB). The Board also expects to discuss this project again with the FASB during Quarter 2 of 2016.

At its next meeting the Board will discuss the feedback from the 2015 Agenda Consultation on this project.