LONDON, June 22 (Reuters) - Tougher accounting rules may be needed that force companies to write down goodwill faster and stop "overly optimistic" calculations, a global securities watchdog said on Thursday.
Goodwill refers to the premium a company has paid for another company, above the net value of its assets.
Too little, too late refers to companies suddenly slashing goodwill when major profitability issues emerge.
IOSCO is an umbrella group for securities regulators from the United States, Canada, Latin America, Europe and Asia.
Since the financial crisis, total goodwill of S&P 500 companies in the United States has more than doubled from $1.6 trillion in 2008 to $3.7 trillion in 2021, IOSCO said.
Persons:
IOSCO, FASB, Huw Jones, Elaine Hardcastle
Organizations:
International Organization of Securities Commissions, European Union, Accounting, EU, ., Thomson, & $
Locations:
United States, Canada, Latin America, Europe, Asia, Britain