The International Accounting Standards Board (IASB) has voted to retain the impairment-only approach to account for goodwill. This decision comes after a post-implementation review of IFRS 3 Business Combinations in 2014.
In making the decision the IASB considered stakeholder feedback from the review of IFRS 3, the discussion paper the IASB published in March 2020 and subsequent research.
The IASB felt that there was no compelling case to change its previous decision about accounting for goodwill.
In September 2022 the IASB also voted to add disclosure requirements to IFRS 3 on information about the subsequent performance of an acquisition, in response to investor feedback.
The next stage now is for the IASB to decide is an exposure draft is needed.