Abdul Majid, Jamaliah and Abu Bakar, Robiah and Lode, Nor Asma (2016) The timing of goodwill write-off: cases of initial overpayment. International Business Research, 9 (11). pp. 65-69. ISSN 1913-9004

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Abstract

This paper explores types of accounting choice related to reporting goodwill impairment losses, if any, exercised by Malaysian listed firms after an implementation of IFRS 3. The study is carried out through an in-depth analysis of annual reports for fifteen firms over a number of years. The fifteen firms selected are those that have goodwill arising from business combinations in December 2006/7, reported goodwill impairment losses in the current year or the future year(s), and the goodwill represents 50% or more of the acquisition price. Results show that of the fifteen firms examined, eight firms appeared to exercise the accounting choice in the form of opportunistic timing in reporting the impairment losses. The study contributes to the accounting choice literature by providing evidence on the timing of goodwill impairment losses for goodwill that arose from an apparent overpayment made at the time of an acquisition of a subsidiary.

Item Type:	Article
Uncontrolled Keywords:	opportunistic reporting, accounting choice, goodwill impairment, business combinations, acquisitions
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	26 Aug 2020 13:23
Last Modified:	26 Aug 2020 13:23
URI:	https://repo.uum.edu.my/id/eprint/27380

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