Accounting for Business Combinations - The Consequences of IFRS Adoption for UK Listed Companies

Impact of international financial reporting standards on the profit and equity of AIM listed companies in the UK

“…This information was further analysed and descriptive statistics were produced, as reported in Table 2, which describes adjustments related to income statement, and Table 3, which shows adjustments related to balance sheet 11 . (Ormrod and Taylor, 2006;Christensen et al, 2007;Stenka and Ormrod, 2007;Stenka et al, 2008;Horton and Serafeim, 2009). However, the overall impact is smaller as compared to the results reported in earlier studies on large listed companies.…”

“…The reasons behind the aforementioned changes to profit (loss) are due to the different approaches in the recognition and measurements of accounting based values, between UK GAAP and IFRS. al., 2008, Stenka et al, 2008, Horton and Serafeim, 2009 Table 3 show a 3.29 percent positive effect of goodwill on equity.…”

“…On the basis of the above discussions, we argue that the impact of IAS 38 on profit could be associated largely with the treatment of intangibles on acquisition and with different approaches or criteria for intangibles on initial consolidation. This may be due to the directors using their discretion to recognise goodwill, which is not amortized, and by avoiding recognising the amortised intangibles in profit (Stenka et al, 2008;Bonham et al, 2009). In addition, any gains resulted on the exchange of assets under UK GAAP, are recorded directly in equity, whereas gains on the exchange of assets under IFRS are recognised in profit only.…”

Impairment No Goodwill: Uma Análise Baseada Na Divulgação Contábil

“…Estudos que procuraram avaliar, em diferentes países, o impacto da transição às normas internacionais no resultado e no patrimônio líquido demonstraram que os ajustes decorrentes do tratamento do goodwill e do valor justo de ativos financeiros são os mais relevantes, afetando, significativamente, o resultado das empresas (Perramon & Amat, 2006;Stenka, Ormrod & Chan, 2008). A variação positiva nos lucros reportados por empresas no Reino Unido, como apresentado por Stenka et al (2008), deve-se, principalmente, a não amortização do goodwill, a qual contribuiu para 24% de aumento total dos lucros, que cresceram em média 39% em função dos ajustes às normas.…”

“…Diferentemente dos resultados apresentados por Perramon e Amat (2006) e Stenka et al(2008), Santos (2012) constatou que, em média, a exclusão dos custos de transação e prêmios na emissão de títulos e a inclusão dos incentivos fiscais no resultado foram os responsáveis pelo aumento no lucro reportado.…”