How do firms implement impairment tests of goodwill?


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How do firms implement impairment tests of goodwill?

Vis færre oplysninger Petersen, Christian en_US Plenborg, Thomas en_US 2009-02-04T10:24:32Z 2009-02-04T10:24:32Z 2007-12-05T00:00:00Z en_US
dc.description.abstract Adopting a survey approach, our study examines how firms implement impairment test of goodwill. We focus on how firms define and measure the recoverable amount of CGU. The survey includes 58 completed questionnaires representing 73% of the firms on the Copenhagen Stock Exchange that recognise goodwill in the balance sheet. Our survey generally supports that a common practice on impairment tests of goodwill has not yet been established. Based on our analysis it is difficult to determine whether this simply reflects that firms adopt an approach suited to their organisational and economic structures or if it exposes that firms are uncertain as how to apply a standard. The analysis also reveals that some of the methods used when defining a CGU are not in compliance with IAS 36. In addition, we find inconsistencies in the way that firms estimate the recoverable amount. Our analysis should be of interest to a number of parties including firms, financial advisors, auditors, standard setters and users of financial statements. Impairment tests, IAS 36, compliance, goodwill, value in use, valuation techniques. en_US
dc.format.extent 34 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2007-2 en_US
dc.title How do firms implement impairment tests of goodwill? en_US
dc.type wp en_US
dc.accessionstatus modt07dec05 nijemo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for Regnskab og Revision en_US
dc.contributor.departmentshort RR en_US
dc.contributor.departmentuk Department of Accounting and Auditing en_US
dc.contributor.departmentukshort AA en_US
dc.idnumber x656555598 en_US København en_US
dc.publisher.year 2007 en_US

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