Accounting, Economics, and Law: Accounting for Goodwill: A Critical Analysis of the Impairment-Only Approach

Sander, Hendrik

Accounting for Goodwill: A Critical Analysis of the Impairment-Only Approach / Sander, Hendrik (CC BY)

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Contents : Accounting for Goodwill: A Critical Analysis of the Impairment-Only Approach / Sander, Hendrik (CC BY)

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CC BY: Attribution 4.0 International. You can find more information here.

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Title:: Accounting, Economics, and Law

Publication:: Berlin Boston, Mass.: De Gruyter

Note:: Fortsetzung der Druck-Ausgabe; Volltext auch als Teil einer Datenbank verfügbar; Gesehen am 10.01.15; C!URL-Ä(06-02-12)355+34!z LF gelöscht(10-01-15)

Scope:: Online-Ressource

ISSN:: 2152-2820

ZDB-ID:: 2629308-0

Keywords:: Zeitschrift

Classification:: Wirtschaft; Sozialwissenschaften

Collection:: Wirtschaft; Sozialwissenschaften

Copyright:: Rights reserved

Accessibility:: Eingeschränkter Zugang mit Nutzungsbeschränkungen

Title:: Accounting, Economics, and Law

Publication:: Berlin Boston, Mass.: De Gruyter

Note:: Fortsetzung der Druck-Ausgabe; Volltext auch als Teil einer Datenbank verfügbar; Gesehen am 10.01.15; C!URL-Ä(06-02-12)355+34!z LF gelöscht(10-01-15)

Scope:: Online-Ressource

ISSN:: 2152-2820

ZDB-ID:: 2629308-0

Keywords:: Zeitschrift

Classification:: Wirtschaft; Sozialwissenschaften

Collection:: Wirtschaft; Sozialwissenschaften

Copyright:: Rights reserved

Accessibility:: Eingeschränkter Zugang mit Nutzungsbeschränkungen

Article

Author:: Sander, Hendrik

Title:: Accounting for Goodwill: A Critical Analysis of the Impairment-Only Approach

Publication:: Berlin Boston, Mass.: De Gruyter, 2024

Language:: English

Information:: Abstract: The present paper addresses the following questions: Is non-arbitrary goodwill impairment testing possible? Would amortization be a better alternative than the impairment-only approach and, if so, should there be case-specific amortization periods or should accounting standards require a uniform amortization period? Empirical evidence suggests that non-arbitrary goodwill impairment testing is not feasible. However, academic literature provides very little in terms of a theoretical debate. To fill this gap, the present paper theoretically substantiates these empirically inspired concerns regarding arbitrariness of goodwill impairment testing and illustrates this substantiation with simple examples. Referring to the question whether an amortization approach is less arbitrary, it theoretically substantiates concerns regarding the arbitrariness of determining case-specific amortization periods. On the basis of this analysis, the paper recommends replacing the impairment-only approach by an amortization approach with uniform amortization periods.

Scope:: Online-Ressource

Note:: Open Access; Archivierung/Langzeitarchivierung gewährleistet

Keywords:: Amortization ; counterfactual assumptions ; neoclassical economic framework ; opportunity costs ; planning horizons ; uniform ; risk-free interest rates ; value of goodwill ; D01 ; D46 ; D52 ; D82 ; G34 ; M41

Classification:: Wirtschaft; Sozialwissenschaften; Technik

URN:: urn:nbn:de:101:1-2602180540202.956503378726

Collection:: Wirtschaft; Sozialwissenschaften; Technik

Copyright:: CC BY

Accessibility:: Free Access

Author:: Sander, Hendrik

Title:: Accounting for Goodwill: A Critical Analysis of the Impairment-Only Approach

Publication:: Berlin Boston, Mass.: De Gruyter, 2024

Language:: English

Information:: Abstract: The present paper addresses the following questions: Is non-arbitrary goodwill impairment testing possible? Would amortization be a better alternative than the impairment-only approach and, if so, should there be case-specific amortization periods or should accounting standards require a uniform amortization period? Empirical evidence suggests that non-arbitrary goodwill impairment testing is not feasible. However, academic literature provides very little in terms of a theoretical debate. To fill this gap, the present paper theoretically substantiates these empirically inspired concerns regarding arbitrariness of goodwill impairment testing and illustrates this substantiation with simple examples. Referring to the question whether an amortization approach is less arbitrary, it theoretically substantiates concerns regarding the arbitrariness of determining case-specific amortization periods. On the basis of this analysis, the paper recommends replacing the impairment-only approach by an amortization approach with uniform amortization periods.

Scope:: Online-Ressource

Note:: Open Access; Archivierung/Langzeitarchivierung gewährleistet

Keywords:: Amortization ; counterfactual assumptions ; neoclassical economic framework ; opportunity costs ; planning horizons ; uniform ; risk-free interest rates ; value of goodwill ; D01 ; D46 ; D52 ; D82 ; G34 ; M41

Classification:: Wirtschaft; Sozialwissenschaften; Technik

URN:: urn:nbn:de:101:1-2602180540202.956503378726

Collection:: Wirtschaft; Sozialwissenschaften; Technik

Copyright:: CC BY

Accessibility:: Free Access

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Contents : Accounting for Goodwill: A Critical Analysis of the Impairment-Only Approach / Sander, Hendrik (CC BY)

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Contents : Accounting for Goodwill: A Critical Analysis of the Impairment-Only Approach / Sander, Hendrik (CC BY) Access restriction There is no access restriction for this record. Copyright CC BY: Attribution 4.0 International. You can find more information here.

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Contents : Accounting for Goodwill: A Critical Analysis of the Impairment-Only Approach / Sander, Hendrik (CC BY)

Access restriction

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CC BY: Attribution 4.0 International. You can find more information here.