Reporting goodwill: are the new accounting standards consistent with market valuations?

Churyk, Natalie Tatiana

doi:10.1016/j.jbusres.2004.05.006

Cited by 38 publications

(22 citation statements)

References 23 publications

(33 reference statements)

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“…Bepari et al (2011) state the companies with higher goodwill intensity provide more detailed analysis on goodwill in the notes of their financial statements. Also, larger firms more likely disclose greater amount of information in financial statements (Churyk, 2005). The extent of disclosed information is found to be dependent on many firmspecific factors such as firm size, industry and goodwill intensity.…”

Section: Literature Review -Relevance Of Goodwillmentioning

confidence: 96%

Quality of Disclosed Information with Emphasis on Goodwill Impairment

Boučková¹

2016

EFAJ

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Abstract:This paper focuses on an analysis of the mandatory disclosure of goodwill impairment information in compliance with the international accounting standard IAS 36. The international financial reporting standards require a wide range of disclosed information concerning the goodwill impairment such as the carrying amount of goodwill allocated to the cash generating unit, determination of the discount rate applied to areas such as cash flow projections or sensitivity analysis. Prior research on disclosure requirements of goodwill impairment has shown generally low level of compliance within the selected companies. The main goal of this paper is to find out whether companies with higher goodwill intensity disclose the information required by IFRS on the impairment of goodwill. An empirical approach consisted of analysing consolidated financial statements of selected companies listed on DAX 30 1 and FTSE 100 2 . Our sample covered 89 companies and focused on their statements from 2010 to 2013. The results showed generally low compliance that subsequently affected the comparability of statements. The following requirements were identified as critical -determination of growth rate, disclosure of growth rate used to extrapolate cash flow projections, determination of discount rate, discount rates applied to cash flow projections and disclosure of the sensitivity analysis. These findings can be further utilized by regulators in order to increase the quality of disclosures in financial statements.

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Section: Literature Review -Relevance Of Goodwillmentioning

confidence: 96%

Quality of Disclosed Information with Emphasis on Goodwill Impairment

Boučková¹

2016

EFAJ

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“…A literatura sobre o earnings management assegura: quando uma companhia de capital aberto objetiva minimizar seus resultados no período (i.e., gerenciar os seus resultados para baixo), ela pode ter diversas pretensões, as mais comuns são: i) pagamento de menos impostos sobre o lucro ou ii) remunerar menos os seus investidores (e.g., Kasanen et al, 1996;Phillips & Pincus, 2003;Dhaliwal et al, 2004;Churyk, 2005;Xavier, 2007;Koerniadi & TouraniRad, 2008;Luiz et al, 2008;Formigoni et al, 2012 Incentivos como a forte regulação contábil, através da adoção de novas normas, a discricionariedade das informações divulgadas, o conflito de interesses existente entre acionistas minoritários e majoritários, conflito de agência, o tipo de estrutura de propriedade e controle, dentre outros fatores podem influenciar na adoção e divulgação de informações financeiras, como o impairment de goodwill (e.g. La Porta et al, 1999;Beyer et al, 2010).…”

Section: Seleção Dos Métodos Para a Análise Dos Dadosunclassified

Concentración de la propiedad y pérdida por deterioro del goodwill: investigación empírica en el contexto de las compañías brasileñas cotizantes en bolsa

Almeida‐Santos

Dani

Klann

2014

Rev. fac. cien. econ.

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ResumoObjetivo deste artigo consiste em verificar se a concentração de propriedade interfere na tomada de decisão em relação à aplicação do teste de impairment sobre o goodwill. Bem como, constata se a divulgação de informações acessórias sobre o goodwill e a governança corporativa está associada a este teste, no contexto das companhias abertas brasileiras. A pesquisa quantitativa, do tipo descritiva e documental, analisou uma amostra de companhias listada na BM&FBOVESPA. Embora os resultados não sejam alcançados por meio de métodos estatísticos mais robustos, é percebido inicialmente, que a concentração de propriedade não interfere na aplicação do teste de impairment sobre o goodwill. Do mesmo modo, não são percebidas associações estatisticamente significativas do teste em relevo, com a divulgação de informações acessórias sobre o goodwill, e com a governança corporativa. Palavras chave: Concentração de propriedade, Impairment, Goodwill, Divulgação, Governança corporativa. PROPERTY OF CONCENTRATION AND THE IMPAIRMENT LOSS ON GOODWILL: EMPIRICAL RESEARCH IN THE CONTEXT OF BRAZILIAN COMPANIES LISTED AbstractPurpose of this article is to check that the concentration of ownership interfere in decision making regarding the application of the impairment test on goodwill. As well as notes to the disclosure of supplementary information about goodwill and corporate governance is associated with this test, in the context of Brazilian companies listed. The research is quantitative, like descriptive and documentary, analyzed a sample of listed companies on the BM&FBOVESPA. Although the results are not achieved through robust statistical methods, is realized initially, that the concentration of ownership * Artigo de pesquisa científica e tecnológica.

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“…Prior studies suggest that in the U.S. the value relevance of goodwill has improved with the introduction of the impairment test (Hirschey and Richardson, 2002;Churyk, 2005;Chen et al, 2006;Hayn and Hughes, 2006;Bens et al, 2007;Chambers, 2007). On the other hand, there are arguments suggesting that the greater discretion of the impairment test could also facilitate opportunistic behaviours, especially in the absence of strong control exercised by the corporate governance system (Beatty and Weber, 2006;Ramanna, 2008).…”

Section: Main Differences Between Ifrs and Italian Gaapmentioning

confidence: 99%

“…On one hand, by providing investors with forward-looking information, the impairment test could enhance the value relevance of goodwill (e.g. Churyk, 2005). On the other hand, it could facilitate opportunistic behaviors in the absence of strong control exercised by the corporate governance system (Beatty and Weber, 2006;Ramanna, 2008).…”

Section: Introductionmentioning

confidence: 99%