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U.S. comment letter on accounting for goodwill

Published on: Aug 23, 2013

An excerpt from the comment letter is shown below:

[W]e believe that any final decisions made regarding this proposed ASU Accounting for Goodwill should not precede the finalization and issuance of the Private Company Decision-Making Framework — A Guide for Evaluating Financial Accounting and Reporting Guidance for Private Companies (“Decision Framework”).

[W]e find it interesting that the first three amendments proposed by the Board and PCC create differences pertaining to recognition and measurement. We believe the Basis for Conclusions should clearly articulate why such recognition and measurement differences are justified.

Conceptually, we support the current accounting model for goodwill because goodwill is not necessarily an amortizing asset. However, we acknowledge that the costs of applying the current accounting model for goodwill may outweigh the benefits that users of private-company financial statements derive from its application.

Full text of the comment letter is available below.


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