Abstract
We examine the association between goodwill impairment loss and goodwill impairment test-related disclosures in Australia. Using an Australian sample of firm-years with goodwill during 2007-12, we find that firm-years with understated goodwill impairment loss have higher goodwill impairment test-related disclosures in notes and vice versa. This is consistent with goodwill firms using disclosures as a way of enhancing the credibility of the goodwill impairment loss number when it is understated. However, we find no evidence that the stock market prices this goodwill impairment loss-disclosures association.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
