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Goodwill measurement under IFRS: UK Endorsement Board survey

Author: ICAEW Insights

Published: 18 Nov 2021

The UK Endorsement Board is seeking input on the practical implications of potential changes to the subsequent measurement of goodwill under IFRS Standards.

Last year, the IASB issued the discussion paper Business Combinations – Disclosures, Goodwill and Impairment. The paper aimed to address certain issues raised by stakeholders as part of the IASB’s 2013-2014 Post-Implementation Review of IFRS 3 Business Combinations. Amongst other topics, the IASB’s Post-Implementation Review included specific questions relating to whether the impairment-only model for goodwill is the best approach. 

The IASB is in the process of considering the feedback received on its discussion paper and is expected to announce the next stage of this project in early 2022. Further details on the IASB’s project on goodwill and impairment including the proposed next steps can be found here.

UK Endorsement Board research and survey

The UK Endorsement Board has issued a survey as part of its own goodwill research project. The input received will help the UK Endorsement Board influence and inform the IASB’s redeliberations in relation to subsequent measurement of goodwill. 

One potential approach under consideration is that subsequent measurement of goodwill follows a hybrid model, where an annual amortisation charge is supported by indicator-only impairment testing.

The UK Endorsement Board is inviting UK IFRS reporters and their lenders to complete a short survey to contribute views on the practical implications of this potential approach. ICAEW members, with relevant backgrounds, are invited to participate in this survey. The survey results will be incorporated into the UK Endorsement Board’s proposals to the IASB as it works towards developing its proposals on subsequent measurement of goodwill. 

The survey takes approximately 15 minutes to complete and is open until 26 November 2021. Responses will be anonymised. 

Further details and a link to the survey are available here.

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