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Goodwill Accounting Could Get Significant Makeover

July 15, 2020, 6:12 PM

How companies account for goodwill could undergo big changes.

A majority of the Financial Accounting Standards Board signaled Wednesday that they favored nixing existing, much-debated rules on marking down the intangible asset. Instead, six of the seven board members said they would consider allowing companies to amortize goodwill, or write it down in steady chunks over time until it disappears from their balance sheets entirely.

If finalized, this would be a significant departure from current rules. While the U.S. accounting rulemaker didn’t take formal action, the tone of the discussion indicated that most FASB members believe that current rules are ...

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