The IFRS Foundation has requested views on the IASB’s discussion paper. UKSA and ShareSoc provided a joint response on the 31st December 2020.
- Disclosures
Our views are that we:
- Support the Board’s overall objective of enhancing disclosure on acquisitions and their subsequent performance. Current disclosure is extremely unsatisfactory.
- Agree with the modifications and qualifications set out in this letter.
- Argue for a need to keep cumulative and separate goodwill and impairment disclosures for each acquisition.
- Goodwill and Impairment
Our views are we:
- Do not regard testing goodwill for impairment as either robust or desirable.
- Concur with the Board’s opposition to the reintroduction of goodwill amortisation.
- Do not see any need to require companies to report total equity excluding goodwill as this number is easy to derive if required.
- Regard separate classifications of all intangibles as useful and, as a minimum, we would like to see separate disclosure of internally generated intangible assets and those created during the acquisition consolidation process.
A copy of our full submission to the IFRS can be found here and the consultation documentation here IASB publishes discussion paper on goodwill and impairment (iasplus.com) .
