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May

Concern that US goodwill proposal may impede international harmonisation

03 May 2001

In February, FASB issued a revised exposure draft on business combinations in which it proposed a model that calls for use of the purchase method for all business combinations, with goodwill not amortised but, rather, tested for impairment.

FASB has just released an analysis of the comments on the exposure draft. While many respondents agreed with the basic proposal that goodwill is a non-wasting asset, most respondents disagreed with the details of the goodwill-impairment model. A sizeable group of respondents, primarily auditors and accounting academicians, disagreed with the basic model. A principal concern expressed by this group is that "an impairment-only accounting method for goodwill moves U.S. GAAP further from international harmonization". Business Combinations is one of the IASC projects handed over to the new IASB.

Agenda for IASB's May meeting is announced

02 May 2001

IASB will meet in London 22-25 May.

On the agenda:

  • Business Combinations - preliminary discussions
  • Extractive Industries - presentation and discussion
  • IAS 39 Implementation Guidance - discussion
  • Improvements Project - preliminary discussion
  • Interpretations - discussion
  • Preface to the Standards - preliminary discussion
  • Reporting on the Internet - presentation and discussion
  • Style of new Standards - discussion
  • Technical Agenda - further discussion of administrative items
On 24 May IASB will meet, in a public session, with the chairs of those national accounting standards-setting bodies that have a formal liaison relationship with IASB. They are Australia/New Zealand, Canada, France, Germany, Japan, UK, and US. The meeting will focus on coordinating agendas and setting out convergence goals.

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