TOKYO -- An international body that sets corporate accounting rules has formally begun deliberations on reinstating goodwill as a periodic cost, a change that would push down the earnings of companies engaging in massive buyouts.
Hans Hoogervorst, chairman of the International Accounting Standards Board, told Nikkei about the discussions taking place. This move is prompted by the spate of mergers and acquisitions in recent years, in which purchasing companies often leave themselves exposed to losses tied to goodwill. A resolution could come as early as 2021.
