Firms commonly use disaggregated accounting information to facilitate efficient contracting over intangible assets …. However, reliance on accounting measures creates information asymmetries and thus a role for contract audits. Using a hand … weaknesses in the licensee's accounting system and reporting flexibility affect the design of two key audit terms — (1) the scope …

We test whether an impending change in the accounting for goodwill mitigates bias in the initial values that acquirers … accounting alters, but does not eliminate, bias in acquisition-date fair values. Specifically, we provide the new insight that … not affect future earnings, as under the planned accounting change. Further, this preference regarding the composition of …