Abstract
Goodwill is a critical issue in the accounting of corporate restructuring activities in terms of both purchase price allocation in corporate acquisitions and the subsequent write-downs. Although the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) new accounting standards provide a reference point for goodwill recognition, the complexity of fair value adjustments and the extensive subjectivity involved in assessing goodwill still make its allocation and the impairment-only approach limitedly transparent. Therefore, this study explores the impact of IFRS 3 (International Financial Reporting Standard 3) on management discretion in goodwill reporting. From a methodological standpoint, the hypotheses are tested on a sample of 68 acquisitions executed by Italian-listed acquirers in the 2012–2020 period. Our results confirm the potential for managerial opportunistic behavior in light of the signaling role of goodwill for investors.
Lingua originale | English |
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pagine (da-a) | 72-83 |
Numero di pagine | 12 |
Rivista | CORPORATE OWNERSHIP & CONTROL |
Volume | 2023 |
DOI | |
Stato di pubblicazione | Pubblicato - 2023 |
Keywords
- Goodwill
- Accounting discretion
- IFRS 3
- Fair value accounting
- Impairment losses