On Jan. 19, Grant Thornton submitted a comment letter in response to the FASB’s proposed ASU, Intangibles – Goodwill and Other (Topic 350) – Accounting Alternative for Evaluating Triggering Events.
We support the FASB’s proposal as a temporary measure because we believe that it will reduce the cost and complexity faced by some private companies and not-for-profit organizations when determining goodwill impairment as of an interim date in the COVID-19 environment. However, we have several reservations, chief among them being our belief that this accounting alternative should only be temporary. In our view, the FASB should continue to holistically assess the accounting for goodwill for all entities as part of its ongoing larger project on recognizing and measuring goodwill.
To read our comments in full, download the letter here.