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Evidence of impaired compliance and regulation in IFRS-based financial reporting

Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.14/178984

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Title: Evidence of impaired compliance and regulation in IFRS-based financial reporting
Related: Global Conference on Business and Finance (6 - 9 January 2009 : Atlantic City, NJ)
Related: Global Conference on Business and Finance proceedings, Vol. 4, No. 1, p.392-410
Related: http://www.theibfr.com/proceedings.htm
Publisher: The Institute for Business and Finance
Date: 2009
FoR/RFCD Code(s): 150100 Accounting, Auditing and Accountability
Author/Creator: Carlin, Tyrone
Author/Creator: Finch, Nigel
Description: The transition to IFRS based reporting has resulted in fundamental departures from many of the long accepted norms embedded in indigenous GAAP systems now superseded in IFRS adopting jurisdictions. The rules relating to goodwill accounting, measurement and reporting represent an excellent case in point, the traditionally dominant capitalise and amortise regime having been disposed of in favour of an impairment testing regime pursuant to which periodic amortisation charges are no longer required. There has been much criticism of this new impairment testing regime, principally along the lines that it results in an increased potential for opportunism in financial statement preparation due to the subjective and unverifiable nature of a range of judgements necessary to the execution of the impairment testing process. In this paper, we add to the extant literature’s catalogue of concerns by documenting systematic non compliance with the disclosure requirements of AASB 136 – Impairment of Assets. We argue that a key problem resulting from this phenomenon is a decline in financial statement comparability. At the policy level, we raise questions as to the implications of the complexity of the IFRS based impairment testing regime both from the preparer and audit perspective.
Description: 19 page(s)
Subject Keyword: 150100 Accounting, Auditing and Accountability
Subject Keyword: goodwill
Subject Keyword: impairment
Subject Keyword: financial reporting
Subject Keyword: creative accounting
Resource Type: conference paper
Organisation: Macquarie University. Macquarie Graduate School of Management

Identifier: http://hdl.handle.net/1959.14/178984
Identifier: ISSN:1931-0285
Identifier: mq-rm-2008004413
Language: eng
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