Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1006687 | Research in Accounting Regulation | 2011 | 4 Pages |
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.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Wei Xu, Asokan Anandarajan, Anthony Curatola,