Business Combinations: Disclosures, Goodwill and Impairment – International Accounting Standards Board
At its meeting on May 22-24, 2023, the IASB discussed proposed changes to IAS 36 Impairment of Assets in relation to the impairment test of cash-generating units containing goodwill (impairment test). The IASB tentatively decided to retain the requirement to perform a quantitative impairment test annually and not to pursue any of the alternatives to it that were suggested by respondents to the IASB’s Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment. The IASB tentatively decided that it is not feasible to design a different impairment test that would, at a reasonable cost, be significantly more effective than the impairment test currently required by IAS 36. The IASB discussed suggestions to improve the effectiveness of the impairment test that were provided by respondents to its Discussion Paper, the criteria to consider those suggestions and feedback from the IASB’s consultative groups and the IFRS Interpretations Committee on some of those suggestions. The IASB was not asked to make any decisions.
Review the IASB Update and podcast on the Board's Web site.
