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EFRAG discussion paper on goodwill impairment testing

  • IFRS - EFRAG Image

Jun 29, 2017

On June 29, 2017, the European Financial Reporting Advisory Group (EFRAG) issued a discussion paper on goodwill impairment testing. In connection with the post-implementation review of IFRS 3, EFRAG has been conducting research into a number of potential amendments to the goodwill impairment test with the view to enhancing its application and effectiveness and reducing complexity.

The scope of the publication, Goodwill Impairment: Can it be improved? is limited to impairment testing and it does not seek to address broader topics such as identification and measurement of acquired intangible assets in a business combination or the extent to which these should be separated from or subsumed into goodwill. Ideas presented in the paper focus on how to allocate goodwill to CGUs, when to determine the recoverable amount, and how to determine the recoverable amount. EFRAG asks European constituents for their views on the advantages and disadvantages of the potential amendments presented in this context.

Re­view the press re­lease on EFRAG's web­site. The deadline for comments to EFRAG is December 31, 2017.

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