2,565
Views
1
CrossRef citations to date
0
Altmetric
ACCOUNTING, CORPORATE GOVERNANCE & BUSINESS ETHICS

Goodwill impairment and key audit matters

, & ORCID Icon
Article: 2207877 | Received 17 Feb 2023, Accepted 24 Apr 2023, Published online: 02 May 2023

References

  • AbuGhazaleh, N. M., Al-Hares, O. M., & Roberts, C. (2011). Accounting discretion in goodwill impairments: UK evidence. Journal of International Financial Management and Accounting, 22(3), 165–17. https://doi.org/10.1111/j.1467-646X.2011.01049.x
  • André, P., Filip, A., & Paugam, L. (2016). Examining the patterns of goodwill impairments in Europe and the US. Accounting in Europe, 13(3), 329–352. https://doi.org/10.1080/17449480.2016.1260748
  • Avallone, F., & Quagli, A. (2015). Insight into the variables used to manage the goodwill impairment test under IAS 36. Advances in Accounting, Incorporating Advances in Internacional Accouting, 31, 107–114. https://doi.org/10.1016/j.adiac.2015.03.011
  • Ayres, D. R., Neal, T., Reid, L., & Shipman, J. E. (2019). Auditing goodwill in the post‐amortization Era: Challenges for auditors. Contemporary Accounting Research, 36(1), 82–107. https://doi.org/10.1111/1911-3846.12423
  • Beatty, A., & Weber, J. (2006). Accounting discretion in fair value estimates: An examination of SFAS 142 goodwill impairments. Journal of Accounting Research, 44(2), 257–288. 107. https://doi.org/10.1111/j.1475-679X.2006.00200.x
  • Bédard, J., Gonthier-Besacier, N., & Schatt, A. (2014), “Analysis of the consequences of the disclosure of key audit matters in the audit report”. Available at: http://www.hec.unil.ch/documents/seminars/dcc/1946.pdf [ Accessed: 01/04/2019].
  • Buertey, S., Sun, E. J., Lee, J. S., & Hwang, J. (2020). Corporate social responsibility and earnings management: The moderating effect of corporate governance mechanisms. Corporate Social Responsibility and Environmental Management, 27(1), 256–271. https://doi.org/10.1002/csr.1803
  • Camacho-Miñano, M. D. M., Munoz-Izquierdo, Pincus, M., Wellmeyer, P., & Muñoz-Izquierdo, N. (2023). Are key audit matter disclosures useful in assessing the financial distress level of a client firm? The British Accounting Review, Forthcoming, 101200. https://doi.org/10.1016/j.bar.2023.101200
  • Carcello, J. V., Neal, T. L., Reid, L. C., & Shipman, J. E. (2020). Auditor independence and fair value accounting: An examination of nonaudit fees and goodwill impairments†. Contemporary Accounting Research, 37(1), 189–217. https://doi.org/10.1111/1911-3846.12514
  • Chalmers, K. G., Godfrey, J. M., & Webster, J. C. (2011). Does a goodwill impairment regime better reflect the underlying economic attributes of goodwill? Accounting and Finance, 51(3), 634–660. https://doi.org/10.1111/j.1467-629X.2010.00364.x
  • Cheung, K. Y., & Lai, C. Y. (2022). External auditors’ trust and perceived quality of interactions. Cogent Business & Management, 9(1), 2085366. https://doi.org/10.1080/23311975.2022.2085366
  • Christensen, B. E., Glover, S. M., & Wolfe, C. J. (2014). Do critical audit matter paragraphs in the audit report change nonprofessional investors’ decision to invest? Auditing: A Journal of Practice & Theory, 33(4), 71–93. https://doi.org/10.2308/ajpt-50793
  • D’Arcy, A., & Tarca, A. (2018). Reviewing IFRS goodwill accounting research: implementation effects and cross-country differences. The International Journal of Accounting, 53(3), 203–226. ISSN 0020-7063. https://doi.org/10.1016/j.intacc.2018.07.004
  • Deloitte. (2017), Benchmarking the new auditor’s report Key audit matters and other additional. Available at: https://www2.deloitte.com/ch/en/pages/audit/articles/benchmarking-the-new-auditors-report.html [Accessed 15/04/2019].
  • Ferramosca, S., & Allegrini, M. (2021). Impairment or amortization of goodwill? Perceptions of goodwill accounting. European Management Journal, 39(6), 816–828. https://doi.org/10.1016/j.emj.2021.03.001
  • Ghosh, A., & Xing, C. (2021). Goodwill impairment and audit effort. Accounting Horizons, 35(4), 83–103. https://doi.org/10.2308/HORIZONS-19-055
  • Giner, B., & Pardo, F. (2015). How ethical are managers’ goodwill impairment decisions in Spanish-listed firms? Journal of Business Ethics, 132(1), 21–40. https://doi.org/10.1007/s10551-014-2303-8
  • Glaum, M., Landsman, W. R., & Wyrwa, S. (2018). Goodwill impairment: The effects of public enforcement and monitoring by institutional investors. The Accounting Review, 93(6), 149–180. https://doi.org/10.2308/accr-52006
  • Gold, A., Heilmann, M., Pott, C., & Rematzki, J. (2020). Do key audit matters impact financial reporting behavior? International Journal of Auditing, 24(2), 1–13. https://doi.org/10.1111/ijau.12190
  • He, Z., Chen, D., & Tang, J. (2021). Do goodwill impairments affect audit opinions? Evidence from China? China Journal of Accounting Research, 14(2), 151–182. https://doi.org/10.1016/j.cjar.2021.03.002
  • International Accounting Standards Board (IASB). (2004). Norma Internacional de Relato Financeiro 3: Concentrações de actividades empresariais. Jornal Oficial da União Europeia, L392/1.
  • International Accounting Standards Board (IASB). (2008). Regulamento 1126/2008 (Report No. JO L 320). International financial reporting standard 3. Business Combinations.
  • International Financial Reporting Standards Foundation (IFRS Foundation). (2019), Better information about business combinations - Goodwill and Impairment: Project update. Available at: https://www.ifrs.org/content/dam/ifrs/project/goodwill-and-impairment/in-brief-goodwill-and-impairment-factsheet.pdf [ Accessed: 04/04/2023]
  • Kabir, H., & Rahman, A. (2016). The role of corporate governance in accounting discretion under IFRS: Goodwill impairment in Australia. Journal of Contemporary Accounting & Economics, 12(3), 290–308. https://doi.org/10.1016/j.jcae.2016.10.001
  • KPMG. (2017a), Key Audit Matters: Auditor’s report snapshot 20 September 2017. Available at: https://home.kpmg/au/en/home/insights/2017/09/key-audit-matters-auditor-report-20-september-2017.html [Accessed 15/04/2019].
  • Linsmeier, T. J., & Wheeler, E. (2021). The debate over subsequent accounting for goodwill. Accounting Horizons, 35(2), 107–128. https://doi.org/10.2308/HORIZONS-19-054
  • Mensah, E., & Boachie, C. (2023). Corporate governance mechanisms and earnings management: The moderating role of female directors. Cogent Business & Management, 10(1), 2167290. https://doi.org/10.1080/23311975.2023.2167290
  • Morais, A. I., & Pinto, I. (2023). Enforcement Shape the Complexity in Accounting Standards? International Journal of Financial Studies, 11(1), 34–51. https://doi.org/10.3390/ijfs11010034.Orquin
  • Orquin, J. L., & Loose, S. M. (2013). A review on eye movements in decision making. Acta Psychologica, 144 (1), 90–206. https://doi.org/10.1016/j.actpsy.2013.06.003
  • Pajunen, K., & Saastamoinen, J. (2013). Do auditors perceive that there exists earnings management in goodwill accounting under IFRS? Finnish evidence. Managerial Auditing Journal, 8(3), 245–260. https://doi.org/10.1108/02686901311304367
  • Pinto, I., & Morais, A. I. (2019). What matters in disclosures of key audit matters: Evidence from Europe. Journal of International Financial Management and Accounting, 30(2), 145–162. https://doi.org/10.1111/jifm.12095
  • Pinto, I., Morais, A. I., & Quick, R. (2020). The impact of the precision of accounting standards on the expanded auditor’s report in the European Union. Journal of International Accounting, Auditing and Taxation, 40, 1–18. https://doi.org/10.1016/j.intaccaudtax.2020.100333
  • Ramanna, K., & Watts, R. L. (2012). Evidence on the use of unveri?able estimates in required goodwill impairment. Review of Accounting Studies, 17(4), 749–780. https://doi.org/10.1007/s11142-012-9188-5
  • Schatt, A., Doukakis, L., Bessieux-Ollier, C., & Walliser, E. (2016). Do goodwill impairments by European firms provide useful information to investors? Accounting in Europe, 13(3), 307–327. https://doi.org/10.1080/17449480.2016.1254348
  • Sierra-García, L., Gambetta, N., García-Benau, M. A., & Orta-Pérez, M. (2019). Understanding the determinants of the magnitude of entity-level risk and account-level risk key audit matters: The case of the United Kingdom. The British Accounting Review, 51(3), 227–240. https://doi.org/10.1016/j.bar.2019.02.004
  • Sun, L. (2016). Managerial ability and goodwill impairment. Advances in Accounting, Incorporating Advances in Internacional Accouting, 32, 42–51. https://doi.org/10.1016/j.adiac.2016.02.002
  • Tunyi, A. A., Ehalaiye, D., Gyapong, E. N., & G, C. (2020). The value of discretion in Africa: Evidence from acquired intangible assets under IFRS 3. The International Journal of Accounting, 55(02), 2050008. https://doi.org/10.1142/S1094406020500080