UKEB publishes its response to the IASB on potential changes to the subsequent accounting for goodwill
21 Dec, 2021
The UK Endorsement Board (UKEB) has published its response to the International Accounting Standard Board's (IASB's) research questions on potential changes to the subsequent accounting for goodwill.
The response, which has been informed from desk-based research and outreach to UK IFRS reporters, indicates that:
- A potential transition to a hybrid model for subsequent measurement of goodwill could have a material impact on the financial position of UK IFRS reporters, if amortisation of existing goodwill balances is required on transition.
- A potential transition would be unlikely to have a major impact on financial stability of UK IFRS reporters.
- The majority of UK IFRS reporters responding to the UKEB's survey do not anticipate major operational changes if there were to be a transition.
- Most UK GAAP reporters consider specific and appropriate factors when determining the useful life of goodwill for amortisation purposes.
The UKEB will conduct field-testing to further explore possible consequences of potential changes to the subsequent measurement of goodwill.
The press release and the response letter are available on the UKEB website.
