Melanie Goetz

Melanie Goetz


Impairment of goodwill: will the IASB reintroduce previous requirements?

With the adoption of IFRS 3 Business Combinations in 2004, the International Accounting Standards Board (IASB) abolished the amortization of goodwill and introduced an impairment-only approach. In the years after the adoption, however, the Board soon noticed a couple of problems. Firstly, the mandatory impairment test is both costly and subjective. Secondly, imp […]
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The debate continues over IFRS 9 (accounting for equity investments)

Will IFRS 9 end up discouraging investors? I asked that question in another article a few months ago in a discussion of the new requirements, which relate to the accounting treatment of equity investments under IFRS 9. In August 2018, the European Financial Reporting Advisory Group (EFRAG) published a summary of the 53 letters that constituents wrote in response […]
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IFRS 3 and the IASB’s updated definition of “business”

It’s not always easy to determine if an acquired set of activities and assets results in a business or only in an asset acquisition. A high level of judgment is required for this, and it’s particularly important because this determination significantly affects how, from an accounting standpoint, the transaction is treated at its initial recognition and subse […]
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IASB seeks clarity by distinguishing equity from liability

In June 2018, the International Financial Standards Board (IASB) published its discussion paper on financial instruments with characteristics of equity (FICE). As part of its conceptual framework project, the discussion paper deals with improvements of IAS 32 Financial Instruments: Presentation with special regard to complex financial instruments. Background T […]
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The necessity of having more meaningful IFRS disclosures

In my last article, I discussed how the International Accounting Standards Board (IASB) aims to significantly improve financial statement disclosures and to provide the preparers with clearer guidance on applying the requirements set out in accounting standards. This article will go into the concerns raised in reaction to the IASB’s March 2017 discussion paper […]
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IFRS disclosure problems and the IASB’s big plan

Tuning up the communication of financial reporting is the main project of the International Accounting Standards Board (IASB) at the moment. Though in fact the IASB started discussing this project back in 2013, when it identified the three concerns about information in the financial statements: There is not enough relevant information. There is too much […]
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