This study investigates the goodwill impairment in the IAS/IFRS. Using case studies, we show the extent of the discretion allowed to managers in deciding the timing and the amount of the reported goodwill impairment. We also compare the IAS36 DCF methodology with other business valuation methods. The comparison gives further evidence on how the managers are able to subjectively select the operating cash flows to be used in the impairment procedure and use excessive optimism in the cash flows projections. The findings highlight the risk that the goodwill impairment is used to manage earnings as predicted by the agency theory. We conclude with a critical discussion of the IAS36 impairment procedure, also in the light of the business evaluation best practice.
|Autori:||Bernini, Francesca; Greco, Giulio; Martelli, Gianni|
|Titolo:||L’impairment dell’avviamento tra valutazione di bilancio e valutazione d’azienda: analisi di casi di studio|
|Anno del prodotto:||2015|
|Appare nelle tipologie:||1.1 Articolo in rivista|