Goodwill Accounting Debate Awaits Answers on Writedown Period

U.S. accounting rulemakers need more time to hammer out details of a plan that would allow companies to amortize, or write down over time, the intangible asset called goodwill they record when they buy another business.

The Financial Accounting Standards Board is considering allowing companies to write down the asset steadily over 10 years but with wiggle room to use a shorter or longer period, depending on the size or the type of the acquisition. The board wants to ensure companies don’t stretch it out too long, and is considering setting a cap. But setting parameters around justifying an amortization ...