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U.S. Accounting Standard-Setter Looks to Tackle Controversial Topics in 2021

 

time

The U.S. accounting standard-setter plans to tackle issues around accounting for goodwill and disclosure of expenses in 2021, after a year marked by a leadership transition and the economic havoc caused by the coronavirus pandemic.

“Our agenda is filled with important items, but those are two that have drawn a lot of interest from people,” said Richard Jones, who took over as chairman of the Financial Accounting Standards Board in July. The FASB makes accounting rules for companies and nonprofit organizations in the U.S.

In recent months, the FASB has advised on how to account for the impact of the pandemic, delayed implementation of certain rules by a year and temporarily slowed its pace of standard-setting. It is now turning to other, longstanding issues that have divided companies and investors for years.

The board, which has seven members, in 2021 wants to improve the way companies recognize the value of goodwill—a hotly debated topic in the world of accounting—and make changes to how businesses reveal certain expenses to investors.

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Source: The Wall Street Journal

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