University of Hertfordshire

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Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden. / Barksjo, J.; Paananen, M.

University of Hertfordshire, 2006. (Business School Working Papers; Vol. UHBS 2006-5).

Research output: Working paper

Harvard

Barksjo, J & Paananen, M 2006 'Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden' Business School Working Papers, vol. UHBS 2006-5, University of Hertfordshire.

APA

Barksjo, J., & Paananen, M. (2006). Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden. (Business School Working Papers; Vol. UHBS 2006-5). University of Hertfordshire.

Vancouver

Barksjo J, Paananen M. Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden. University of Hertfordshire. 2006. (Business School Working Papers).

Author

Barksjo, J. ; Paananen, M. / Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden. University of Hertfordshire, 2006. (Business School Working Papers).

Bibtex

@techreport{5d27dce893ce40ff9fd504ad3140fbc0,
title = "Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden",
abstract = "We examine the effects of the implementation of the impairment-only approach to goodwill accounting on the financial reporting quality in Sweden after the adoption of IFRS. Using accounting data from public companies in Sweden, we test the value relevance and timeliness of the accounting information before and after the switch to IFRS. We compare the value relevance of accounting information between 2004 and 2005 to investigate the effects of the switch from goodwill amortization to the impairment-only approach. We find some weak evidence of an increase in the value relevance of accounting information among companies with substantial goodwill balances in proportion to total assets. However, we find no statistically significance in the incremental value relevance related to amortization charges, impairment charges, or intangible assets, on share prices between the two periods. Moreover, we find no evidence of increased timeliness or any association between timeliness in reported earnings in 2005 and impairment charges made in that year.",
author = "J. Barksjo and M. Paananen",
year = "2006",
language = "English",
series = "Business School Working Papers",
publisher = "University of Hertfordshire",
type = "WorkingPaper",
institution = "University of Hertfordshire",

}

RIS

TY - UNPB

T1 - Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden

AU - Barksjo, J.

AU - Paananen, M.

PY - 2006

Y1 - 2006

N2 - We examine the effects of the implementation of the impairment-only approach to goodwill accounting on the financial reporting quality in Sweden after the adoption of IFRS. Using accounting data from public companies in Sweden, we test the value relevance and timeliness of the accounting information before and after the switch to IFRS. We compare the value relevance of accounting information between 2004 and 2005 to investigate the effects of the switch from goodwill amortization to the impairment-only approach. We find some weak evidence of an increase in the value relevance of accounting information among companies with substantial goodwill balances in proportion to total assets. However, we find no statistically significance in the incremental value relevance related to amortization charges, impairment charges, or intangible assets, on share prices between the two periods. Moreover, we find no evidence of increased timeliness or any association between timeliness in reported earnings in 2005 and impairment charges made in that year.

AB - We examine the effects of the implementation of the impairment-only approach to goodwill accounting on the financial reporting quality in Sweden after the adoption of IFRS. Using accounting data from public companies in Sweden, we test the value relevance and timeliness of the accounting information before and after the switch to IFRS. We compare the value relevance of accounting information between 2004 and 2005 to investigate the effects of the switch from goodwill amortization to the impairment-only approach. We find some weak evidence of an increase in the value relevance of accounting information among companies with substantial goodwill balances in proportion to total assets. However, we find no statistically significance in the incremental value relevance related to amortization charges, impairment charges, or intangible assets, on share prices between the two periods. Moreover, we find no evidence of increased timeliness or any association between timeliness in reported earnings in 2005 and impairment charges made in that year.

M3 - Working paper

T3 - Business School Working Papers

BT - Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden

PB - University of Hertfordshire

ER -