FASB Discusses Project on Intangible Assets and Goodwill

At its April 7, 2021, meeting, the FASB discussed its project on identifiable intangible assets and subsequent accounting for goodwill. The Board reviewed the staff’s research and analysis on (1) “subsuming certain identifiable intangible assets in a business combination into goodwill” and (2) factors that entities could consider “when estimating the useful life of goodwill if they choose to deviate from the default period and a cap on the amortization period.”

The Board directed its staff to conduct additional outreach to learn what types of intangible assets entities find useful in decision making. In addition, the staff will perform additional research related to factors that entities may consider when estimating the useful life of goodwill.

For more information, see the meeting handout and summary of tentative Board decisions on the FASB’s Web site.