This study presents some evidence of discount rate selection on goodwill impairment testing under the new requirements of FRS 36. The selection of discount rates is believed to be an important key factor that affects the outcome of impairment assessment, especially when using the method of value...

In this paper there has been made a comparison between the amortisation and the impairment methods for accounting for goodwill, with regards to their associated effects on accounting quality. Based on two qualitative characteristics of accounting information, as formulated by the International...

Investors and their advisers have to assess how the activities of the acquirer and its acquired business develop following a business combination. Due to a complexity of business activities this is a challenging exercise. Certainly, one of the major challenge concerns the goodwill. Is it an...

This study is the first to analyze the value relevance of goodwill impairment losses (GIL) in an international context; therefore, it builds a link between institutional, cultural, and religious factors and cross-country variations in the relevance of GIL. Using a sample of 18,143 firm-year...

The economic valuation of goodwill is based on an interdisciplinary approach that synergistically considers the legal, accounting, fiscal, and strategic aspects. The controversial concept of goodwill (goodwill if positive, badwill if negative) has always divided lawyers, businesspeople, and...

Recent increases in the occurrence and magnitude of goodwill impairment charges highlight the increasing importance of the role of the auditor in goodwill accounting. This study examines the association between disclosures about the fair value measurement of goodwill and audit fees. We find that...

This paper analyses accounting accruals that may relate to earnings quality and its information content. The characteristics specifying earning quality are discussed according to research surveys of earnings quality. These are compared with the characteristics of accounting income specified by...

The nature of “goodwill” for tax purposes was an important issue in Australia long before the adoption of the Commonwealth income tax, with the relationship between goodwill and sales of business premises a central issue in colonial stamp duty assessments (and consequent litigation)....

An expert advises a decision maker over time. With both the quality of advice and the extent to which it is followed remaining private, the players have limited information with which to discipline each other. Even so, communication in and of itself facilitates cooperation, the relationship...

If firms disclose the use of independent valuation experts to assess the magnitude of goodwill impairments should investors rationally condition their values on that disclosure? This research shows that firms that disclose use of an independent valuation expert are more likely to report a higher...