FASB seeks feedback on accounting for identifiable intangible assets and goodwill

The FASB has issued an Invitation to Comment on the accounting for identifiable intangible assets and subsequent accounting for goodwill. Feedback is requested on whether the FASB should proceed with a broader standard-setting project. 

Applicability

Invitation to Comment, ASC 350

• All companies

Relevant dates

• July 9, 2019 – FASB issued Invitation to Comment 
• October 7, 2019 – Comments due on Invitation to Comment 

Key impacts

The FASB has a project on its technical agenda to broadly reconsider the accounting for identifiable intangible assets and goodwill.

To get feedback from stakeholders on how to proceed with the project, the FASB has issued an Invitation to Comment

The Invitation to Comment does not include any Board decisions. Instead, it asks whether the Board should move forward with the project and solicits specific stakeholder feedback on whether:

• It should change the subsequent accounting for goodwill
  • from an impairment model to an amortization model; or
  • by simplifying the impairment test
• It should modify the recognition of intangible assets in a business combination
• It should add or change disclosures
• Constituents believe comparability and consistency between public business entities and all other entities is important

Related content

• KPMG's Defining Issues: FASB simplifies goodwill impairment test
• KPMG's Defining Issues: Extending certain private company alternatives to not-for-profits