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IASB proposes to stop pooling and goodwill amortisation

  • IASB Exposure Draft (original) Image

05 Dec 2002

The International Accounting Standards Board has proposed major revisions to its standards on accounting for business combinations and intangible assets.

The proposals are set out in exposure draft ED 3 Business Combinations, and an Exposure Draft of Proposed Amendments to IAS 36 Impairment of Assets, and IAS 38 Intangible Assets.

The IASB invites comments on the Exposure Drafts by 4 April 2003. The most significant proposals are to prohibit the use of the pooling (uniting) of interests method of accounting for business combinations and to require that goodwill and other intangible assets with indefinite lives be tested for impairment but not amortised. Pooling has already been banned in Australia, Canada, Hong Kong, New Zealand, and the United States.

Click for IASB Press Release (PDF 42k). ED 3 will be available for download from IASB's website starting 16 December.


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