Big Numbers at Stake in Long-Running Goodwill Accounting Debate

Sept. 23, 2021, 8:27 PM

Goodwill—the noncash asset companies record when they buy other businesses—represents 42% of the book value of companies in the S&P 500 and its size can’t be ignored in the long-running debate on how to account for it, according to a major investor group.

“This is a big, big number and the discussion should not be had solely in the context of accounting theory,” Sandy Peters, head of financial reporting policy at the CFA Institute said during a Thursday webcast.

The Financial Accounting Standards Board is considering allowing companies to amortize, or write down in steady chunks over time, the ...

To read the full article log in. To learn more about a subscription click here.