How do firms implement impairment tests of goodwill?

OPEN ARCHIVE

Union Jack
Dannebrog

How do firms implement impairment tests of goodwill?

Show simple item record

dc.contributor.author Petersen, Christian en_US
dc.contributor.author Plenborg, Thomas en_US
dc.date.accessioned 2009-02-04T10:24:32Z
dc.date.available 2009-02-04T10:24:32Z
dc.date.issued 2007-12-05T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/6744
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
dc.publisher.city København en_US
dc.publisher.year 2007 en_US


Creative Commons License This work is licensed under a Creative Commons License.

Files Size Format View
wp_2007-02.pdf 363.1Kb PDF View/Open

This item appears in the following Collection(s)

Show simple item record