Publication:
Accounting For Assets Impairment: Creative Impairment Strategy On Discount Rate Disclosure

Simple item page
dc.contributor.authorNur Hidayah Lailien_US
dc.contributor.authorKhairil Faizal Khairien_US
dc.date.accessioned2024-05-27T14:41:42Z
dc.date.available2024-05-27T14:41:42Z
dc.date.issued2014
dc.descriptionWulfenia, Vol, 21, issue 2, pp: 136-159, 2014en_US
dc.description.abstractDiscount rates selection represent a centrally material factor impacting in goodwill valuation decisions. This study examines the consistency of opportunistic behavior in documenting the variances between discount rates used by companies and independently generated estimates of company specific, risk-adjusted discount rates. This study examines the selection of 20 top listed companies on Bursa Malaysia that have released their 2010 and 2011 annual reports with reported goodwill and analyzed using the CAPM and goodwill intensity. The dominant pattern was for observed discount rates to be lower rather than higher than the estimated value, with 15 (75%) companies of the 20 both in 2010 and 2011 in excess of 150 bps lower than independent risk-adjusted estimate. Therefore, the data provided evidence of the use of aggressively low discount rates, with the result that CGU asset portfolio recoverable amount values will have been overestimated and potential goodwill impairment losses deferred or avoided.en_US
dc.identifier.epage159
dc.identifier.issn1561-882X
dc.identifier.issue2
dc.identifier.spage136
dc.identifier.urihttps://papers.ssrn.com/sol3/papers.cfm?abstract_id=2448101
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/3620
dc.identifier.volume21
dc.language.isoenen_US
dc.publisherRegional Museum of Carinthiaen_US
dc.relation.ispartofWulfeniaen_US
dc.subjectDiscount Rates,en_US
dc.subjectValue in Use Method,en_US
dc.subjectGoodwill Impairment Testing,en_US
dc.subjectGoodwill Intensity,en_US
dc.subjectFRS 136,en_US
dc.subjectBursa Malaysiaen_US
dc.titleAccounting For Assets Impairment: Creative Impairment Strategy On Discount Rate Disclosureen_US
dc.typeArticleen_US
dspace.entity.typePublication

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Accounting For Assets Impairment; Creative Impairment Strategy On Discount Rate Disclosure.pdf
Size:
200.42 KB
Format:
Adobe Portable Document Format
Description:
Accounting For Assets Impairment: Creative Impairment Strategy On Discount Rate Disclosure
Download

Collections

Other Publications