June

IVSC concludes article series on goodwill amortisation

02 Jun 2020

The International Valuation Standards Council (IVSC) has published the third article in a series looking into whether principles underlying business valuations are compatible with the concept of goodwill amortisation. The series aims at encouraging public discussion by exploring certain fundamental questions in this area to inform financial statement preparers, reviewers, and users, and aid the capital market.

The third article Opportunities for Enhancing the Goodwill Impairment Framework can be accessed on the IVSC website.

The second article What is the Information Value of the Current Impairment Framework? was published in December 2019.

The first article Is Goodwill a Wasting Asset? was published in September 2019.

FASB and ASBJ hold biannual meeting

02 Jun 2020

On 1 June, the FASB and the Accounting Standards Board of Japan (ASBJ) held a joint virtual meeting. The meeting was the 27th in a series of biannual meetings between the two standard-setters.

The two boards informed each other about the effects of the COVID-19 pandemic on their respective accounting standards and exchanged views on technical topics in which they both have an interest, including accounting for goodwill and intangibles and financial performance reporting and disclosures.

The next meeting between the FASB and ASBJ is expected to be held in the second half of 2020. For more information about the latest meeting, see the press release on the ASBJ website.

IOSCO statement on importance of disclosure about COVID-19

02 Jun 2020

The International Organization of Securities Commissions (IOSCO) has issued a public statement on the importance of disclosure about COVID-19 aspects to highlight financial reporting issues that should be considered by issuers in order to provide investors with relevant and reliable information in their financial reports and related disclosure documents.

The statement discusses:

  • the importance of disclosures about the impact on amounts recognised, measured and presented in the financial statements;
  • the importance of transparent and complete disclosures that should be entity-specific and especially highlight significant judgments and estimates;
  • non-GAAP measures that should be reliable and informative;
  • interim reports that should provide robust disclosures of material information and management’s response to the changing circumstances;
  • implications for the annual audit; and
  • the balance between the flexibility provided by regulators by extending the period to file financial information and the responsibility to provide timely and comprehensive financial information that includes reasonable and supportable judgments.

A corresponding press release and the public statement are available on the IOSCO website.

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