No Need to Change Goodwill Accounting, Global Rulemakers Decide

The International Accounting Standards Board said Wednesday there was no need to change the accounting for goodwill, the intangible asset recorded when companies buy another business.

The 14-member board voted unanimously not to remove a requirement for companies to perform an impairment test of the value of goodwill each year, or to try to find a more effective impairment test.

In November they decided not to switch over to goodwill amortization, writing off its value over time, instead sticking with the present system of impairment where goodwill is only written down if there are concrete reasons to do so.

• Board ...