FASB removes goodwill project from its technical agenda

Applicability

• All entities that have goodwill and identifiable intangible assets.

Relevant dates

• Effective immediately

Key impacts

In 2018, the FASB added a project to its technical agenda to revisit subsequent accounting for goodwill and accounting for certain identifiable assets.

Since then, there have been several meetings discussing the direction of the project and whether the FASB should change the accounting for goodwill from its accounting model of no amortization and impairment testing to an amortization model.

During its most recent meeting on June 15, 2022, the Board discussed the future direction of the project, and ultimately decided to deprioritize and remove the project from its technical agenda.

The Board indicated there is currently not a clear case for change, however it will continue to monitor feedback from investors and preparers to determine if future standard setting is necessary.

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