U.S. Approach to Goodwill Accounting Gets Some Global Backing

International rulemakers should follow the approach the U.S. is considering on how to account for goodwill value in acquisitions, several members of the International Accounting Standards Board said Tuesday.

The IASB is divided on how to account for goodwill, an intangible asset that companies record when they buy other businesses. Board members meeting Tuesday suggested it might make sense to follow the direction American standard setters are taking. Feedback to an IASB paper has signaled strong support for that approach by both users and preparers of accounts.

The board voted narrowly in 2019 to stick with its current system, in ...