Abdul Majid, Jamaliah (2016) Zero goodwill impairment: market indications without measurement. In: Proceeding 6th International Conference on Global Social Entrepreneurship (Kota Bharu) 2016, Kota Bharu ,Kelantan.

PDF Restricted to Registered users only Download (83kB) | Request a copy

Abstract

This study examines the determinants of the recognition choice related to reporting zero goodwill impairment after an implementation of an impairment-only approach to accounting for acquired goodwill. The analysis is carried out by focusing on listed companies in an emerging economy of Malaysia from 2006-2012 that experienced declines in the market values below the book values of the net assets for three consecutive years. Regression results show that the recognition choice can be explained partly by the high book-to-market ratio, and the types of industry the firms operated. The results also show that firms that have an improvement in the operating cash flows and acquired goodwill during the year are less likely to exercise the recognition choice in reporting zero goodwill impairment. The study contributes modestly to the accounting choice literature by providing new empirical evidence on the determinants of the recognition choice related to reporting zero goodwill impairment.

Item Type:	Conference or Workshop Item (Paper)
Additional Information:	ISBN 9789671371848
Uncontrolled Keywords:	Recognition choice; Goodwill impairment; Market capitalisation; Accounting discretion
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	College of Business
Depositing User:	Mr. Che Hasan Hashim
Date Deposited:	30 Dec 2018 04:15
Last Modified:	30 Dec 2018 04:15
URI:	https://repo.uum.edu.my/id/eprint/25341

Actions (login required)

View Item