Hear PwC discuss the FASB and the IASB projects on goodwill.
The FASB and the IASB each have projects on the subsequent accounting for goodwill and the implications may be bigger than whether one or both boards adopt an amortization model. Host Heather Horn sits down with Andreas Ohl, PwC National Office partner, and Ruth Preedy, PwC director and IFRS accounting specialist, to discuss the status of both projects, where they converge and diverge, and how the projects might develop.
5:41 - Summary of the IASB’s goodwill project. Ruth starts by clarifying that the IASB’s project differs from the FASB’s and then shares some background on the IASB’s project scope.
10:07 - The FASB’s and IASB’s tentative changes to the impairment test. Ruth and Andreas share the changes to the impairment test being discussed by each board.
12:31 - Comment letters. Next, we cover themes from comment letters received on both projects. We talk about some of the differences and similarities expressed in stakeholders’ letters.
Want to learn more? Read our Point of view, The unbalanced balance sheet: Making intangibles count.
Andreas Ohl is a partner in PwC's National Office focused on mergers and acquisitions under US GAAP and IFRS. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.
Ruth Preedy is a PwC director and the IFRS Pharmaceutical Leader. Ruth previously hosted PwC’s IFRS Talks podcasts, covering IFRS accounting and reporting updates. Ruth specializes in navigating issues related to fair value measurement, impairment, and business combinations.
Heather Horn is PwC's National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.