Goodwill Impairment

In 2001, goodwill amortization in the US was eliminated in favor of an impairment-only approach, which, according to critics, gives managers vast discretion and opportunities for earnings management. Prior research suggests that discretionary asset write-offs are associated with economic factors and...

Full description

Main Author: Sellhorn, Thorsten
Format: eBook
Language:English
Published: Bern Peter Lang International Academic Publishers 20180928
Subjects:
Usa
Online Access:
Collection: OAPEN - Collection details see MPG.ReNa
LEADER 02015nmm a2200457 u 4500
001 EB001882673
003 EBX01000000000000001046040
005 00000000000000.0
007 cr|||||||||||||||||||||
008 191110 ||| eng
020 |a 9783631527078 
100 1 |a Sellhorn, Thorsten 
245 0 0 |a Goodwill Impairment  |h Elektronische Ressource 
260 |a Bern  |b Peter Lang International Academic Publishers  |c 20180928 
300 |a 350 
653 |a Bilanzpolitik 
653 |a Empirical 
653 |a US-GAAP 
653 |a Firmenwert 
653 |a Write 
653 |a Sellhorn 
653 |a Generally Accepted Accounting Principles 
653 |a Accounting: study & revision guides 
653 |a Geschäftswert 
653 |a Investigation 
653 |a under 
653 |a Goodwill 
653 |a Impairment 
653 |a SFAS 
653 |a USA 
653 |a Offs 
653 |a Budgeting & financial management 
653 |a Wertberichtigung 
041 0 7 |a eng  |2 ISO 639-2 
989 |b OAPEN  |a OAPEN 
856 |u http://www.oapen.org/download?type=document&docid=1003253  |3 Volltext 
082 0 |a 320 
082 0 |a 657 
082 0 |a 330 
520 |a In 2001, goodwill amortization in the US was eliminated in favor of an impairment-only approach, which, according to critics, gives managers vast discretion and opportunities for earnings management. Prior research suggests that discretionary asset write-offs are associated with economic factors and managers’ financial reporting objectives. Based on a systematic literature review, this study investigates for a comprehensive sample of US firms the determinants of goodwill write-off behavior. Regression analysis shows that write-off behavior is significantly explained by firms’ economic properties. Only in large, high-profile firms, incentives appear to be significant determinants. These findings suggest that the impairment-only approach does capture goodwill impairment at least to some extent.