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Accounting for Goodwill Writedowns Under Renewed Scrutiny

July 9, 2019, 8:32 PM

U.S. rulemakers are seeking public feedback on an area of accounting that has perplexed companies and investors for years—valuing assets acquired in the purchase of another company.

The Financial Accounting Standards Board on July 9 asked for input on how to account for intangible assets that a business gains when it buys another business. It also wants ideas on how to account for goodwill, the hard-to-pinpoint asset that must be tested every year for drops in value.

“Some have questioned whether the cost of the annual impairment test warrants the process every year,” FASB member Marsha Hunt said...

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