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Big Decisions Remain As Goodwill Accounting Headed For Change

Nov. 11, 2020, 6:13 PM

U.S. accounting rulemakers are barreling toward an overhaul of how companies report the goodwill on their balance sheets.

While the Financial Accounting Standards Board hasn’t formally taken action, its discussions so far show that change is coming. A majority of the board on Wednesday signaled support for a plan to amortize, or write down steadily over time, the value of the intangible asset that arises when a business buys another business.

The board faces tough decisions, however, on the length of time companies should be allowed to write down goodwill and what method it should use to do ...

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