Big bath and goodwill impairment

Science and International Goodwill

The Proposed Goodwill Impairment Test – Implications for Preparers, Auditors and Corporate Governance

Accounting for goodwill is again controversial as Australia adopts international accounting standards from 1 January 2005. The current method of accounting for goodwill will change dramatically as detailed in the AASB’s ED109 and IASB’s ED3. Goodwill acquired in a business combination will no longer be amortised but rather goodwill will be tested for impairment annually (ED3, para 54). This pap...

Comparison of Discount Rates Disclosure Analysis in Goodwill Impairment Testing among Singapore Listed Firms

This study presents some evidence of discount rate selection on goodwill impairment testing under the new requirements of FRS 36. The selection of discount rates is believed to be an important key factor that affects the outcome of impairment assessment, especially when using the method of value in use. This study objectively examines the Singapore listed firm’s selection of discount rates disc...

Goodwill and dynamic advertising strategies

In this paper, we empirically analyze weekly advertising policies of manufacturing firms in consumer goods markets. We assume firms engage in persuasive advertising, thus policies of firms affect the goodwill of a brand. We introduce a demand and a goodwill production function. A simple transformation of the demand function allows us to identify not only the demand parameters but also the param...

Goodwill Valuation Approaches, Methods, and Procedures

Financial advisers are often asked to value goodwill within a corporate transaction environment. These goodwill valuations may be performed in the due diligence phase of the corporate transaction for transaction pricing and structuring purposes. These goodwill valuations may be performed in the consummation phase of the corporate transaction—as part of the preparation of a transaction fairness ...