Author : Ahmad Alshehabi
Publisher : LAP Lambert Academic Publishing
ISBN 13 : 9783844319323
Total Pages : 76 pages
Book Rating : 4.3/5 (193 download)
Book Synopsis The Side-Effects of the Implementation of Ifrs Goodwill Impairment by : Ahmad Alshehabi
Download or read book The Side-Effects of the Implementation of Ifrs Goodwill Impairment written by Ahmad Alshehabi and published by LAP Lambert Academic Publishing. This book was released on 2011-03 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the effects of IFRS 3 "Business Combinations" on goodwill impairment losses reported by a sample of 52 firms, drawn from the largest UK firms listed on the main market of the London Stock Exchange during the period 2006-2008. The sample was identified as a result of certain criteria. The majority of the sample firms met the threshold of significant goodwill (greater than or equal to 10% of total assets) indicating that goodwill as an asset representing a material component of the reported asset portfolio for the research sample. The study investigates whether the current accounting treatment for goodwill has contributed to greater uniformity in accounting for goodwill and its impairment, and consequently enabled comparison to be made across industries and through time. The study lends support to the international accounting standard-setters' decision to question the usefulness of the current accounting treatment of goodwill under IFRS.