The purpose of this paper is to provide evidence relating to the potential for and extent of opportunistic exercise of discretion by large Australian and New Zealand reporting entities undertaking goodwill impairment testing pursuant to the IFRS framework. The research question is addressed...

Discount rate selection represents a centrally material factor impacting valuation models. Given the strong reliance on discounted cash flow modelling as a basis for determining an asset’s recoverable amount, the judgment exercised by reporting entities regarding rate selection is of paramount...

The transition to IFRS based reporting has resulted in fundamental departures from many of the long accepted norms embedded in indigenous GAAP systems now superseded in IFRS adopting jurisdictions. The rules relating to goodwill accounting, measurement and reporting represent an excellent case...