Global Rulemakers Say It’s Time to Fix Goodwill Accounting

The International Accounting Standards Board said Thursday that it would decide whether to change the rules covering acquisition accounting at its next meeting.

The announcement, which follows a long argument over the best approach, comes amid evidence that companies aren’t adequately reporting on the post-acquisition performance of companies they’ve bought, the board said. There was some disclosure outside of the financial statements, it said, but this needed to be brought within those statements.

In comments echoed by other board members, IASB chair Andreas Barckow said that “it’s time to make a decision,” at the September meeting. The IASB in ...