The International Valuation Standards Council (IVSC) has issued the first two articles in its three-part series on goodwill amortization. The first article, entitled 'Is Goodwill a Wasting Asset?', asks the following question: can financial reporting accurately reflect deal economics? The second article, entitled 'Information Value of the Current Impairment Test: Leading or Lagging Indicator?' explores four potential reasons for the persistent timing lag in the disclosure of goodwill impairments.
The Perspectives Papers series is timely as FASB and IASB give consideration to a move to amortization of goodwill vs. the current impairment testing regime. You can find both articles below:
Article 1: Is Goodwill a Wasting Asset?