The objective is to produce harmonized standards in Canada and the United States. The exposure draft contains several significant changes. The purchase method is the only acceptable method to account for business combinations. Goodwill must be amortized over a reasonable period, up to 20 years.
More guidance is provided to determine whether goodwill is impaired.
Goodwill amortization and impairment charges are presented net of tax as a separate line item in the income statement.