We examine to what extent firms adhere to the stated intent of non-compulsory accounting standards when reporting for intercorporate investments. The Generally Accepted Accounting Principles (GAAP) in Norway strongly recommend that a 20–50% intercorporate investment is accounted for by the...

To provide a fuller picture of compliance with SFAS 142, we hand-collect data to track 893 large acquisitions. Our model, which links impairments to post-acquisition performance declines and acquisition-year attributes, identifies 349 acquisitions as likely to impair. We expand compliance to...