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Deloitte comments on FASB's proposed ASU on goodwill impairment

Published on: Jul 12, 2016

Deloitte & Touche LLP comments on the FASB's proposed ASU Simplifying the Accounting for Goodwill Impairment, which was issued in May 2016.

An excerpt from the comment letter is shown below:

We support the FASB’s proposal to simplify the accounting for goodwill impairment. We agree that eliminating step 2 of the goodwill impairment test will decrease the cost and complexity for many entities while not significantly reducing the usefulness of the information provided to users of financial statements. While supportive of the proposal, we recommend that the Board consider in this phase of the project additional changes as discussed in the appendix below, which contains our responses to the proposed ASU’s questions for respondents. We believe that such additional changes would further simplify the accounting for goodwill without significantly reducing the usefulness of the resulting financial information.

We are also supportive of the Board’s project on the subsequent accounting for goodwill for public business entities and not-for-profit entities and encourage the Board to continue this broader reconsideration of the goodwill model. 

The full text of the comment letter is available below.

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