The issue of annual impairment testing versus amortization of goodwill is being revisited with the Financial Accounting Standards Board (FASB) issuance of an Invitation to Comment (ITC) on how to account for certain identifiable intangible assets acquired in a business combination. Private companies and not-for-profit organizations got relief from the rules after struggling with the burden of annual testing. In preliminary outreach with public-company stakeholders, the FASB received mixed feedback “indicating that the benefit of certain intangible asset and goodwill impairment information might not justify the cost of preparing and auditing that information,” according to the 34-page ITC. The document is divided into five sections addressing the following topics:

• Whether to change the subsequent accounting for goodwill;
• Whether to modify the recognition of intangible assets in a business combination;
• Whether to add or change disclosures about goodwill and intangible assets;
• Comparability and scope; and
• Other topics for consideration.

Comments on the ITC are due by October 7. For more information, see the video and the ITC on the FASB’s website. After receiving comments, the FASB will host a formal roundtable.