Goodwill Impairment Disclosure under AASB136 from 2005-2010

Journal of Applied Research in Accounting and Finance (JARAF), Vol. 7, No. 2, 2012

25 Pages Posted: 12 Feb 2013

See all articles by James Guthrie

James Guthrie

Macquarie University - Department of Accounting and Finance; University Of Bologna - Department of Management; Macquarie University, Macquarie Business School

Tsz Ting Pang

Macquarie University

Date Written: February 11, 2013

Abstract

This study examines goodwill reporting disclosures in Australia under AASB 136 – Impairment of Assets from the period 2005 to 2010. It explores the extent to which the disclosures complied with the mandatory requirements for impairment testing for goodwill after the implementation of the ‘impairment regime’ in AASB 136. Using a sample of 287 Australian-listed firms, we found improved compliance with almost all disclosure items explored, while non-disclosure was found to be higher for more complicated disclosures. Several firms persistently provided no required disclosures. These findings suggest that some auditors and preparers are failing to comply with mandatory requirements, a potential concern for regulators.

Keywords: goodwill, AASB 136, impairment, Australia

JEL Classification: M40, M41

Suggested Citation

Guthrie, James and Pang, Tsz Ting, Goodwill Impairment Disclosure under AASB136 from 2005-2010 (February 11, 2013). Journal of Applied Research in Accounting and Finance (JARAF), Vol. 7, No. 2, 2012, Available at SSRN: https://ssrn.com/abstract=2215336

James Guthrie (Contact Author)

Macquarie University - Department of Accounting and Finance ( email )

Sydney - NSW, 2109
Australia

University Of Bologna - Department of Management ( email )

P.Le Vittoria 15
Forli', 47121
Italy
+39-0543-374-621 (Phone)

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Tsz Ting Pang

Macquarie University ( email )

North Ryde
Sydney, New South Wales 2109
Australia

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