The project will provide UK-specific information to the International Accounting Standards Board (IASB) during its redeliberations on its Discussion Paper 2020/1 Business Combinations: Disclosures, Goodwill and Impairment.

The project will explore:

• how a hybrid model for subsequent measurement of goodwill, i.e. an annual amortisation charge supported by impairment testing, can provide information that is useful for users;
• how transitioning to such a hybrid model might affect the financial position of a group or company;
• potential approaches to estimating the useful life of goodwill for amortisation purposes; and
• transitional arrangements and cost implications.

UKEB also invites UK IFRS reporters and their lenders to complete a short survey to contribute views on the practical implications of a potential transition to a hybrid model, including the impact on debt covenants and legal and regulatory requirements. The survey is open until 26 November 2021. 

Click here for more information on the UKEB website and here to access the survey.