The value relevance of goodwill impairment

Document Type

Article

Publication Date

10-1-2011

Abstract

After a 5. year deliberation, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard (SFAS) No. 142, Goodwill and Other Intangible Assets. The main objective of SFAS 142 is to increase transparency. We find that goodwill impairment charges are negatively viewed by investors, on average, but financial health moderates the relation. Returns for profitable firms are negative, but returns for loss firms are positive. The regulatory implications are that the goodwill impairment charge is conveying value relevant information. © 2011 Elsevier Ltd.

Identifier

80655124637 (Scopus)

Publication Title

Research in Accounting Regulation

External Full Text Location

https://doi.org/10.1016/j.racreg.2011.06.007

ISSN

10520457

First Page

145

Last Page

148

Issue

2

Volume

23

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