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Firm life cycle and the disclosure of estimates and judgments in goodwill impairment tests: Evidence from Australia

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  • Kabir, Humayun
  • Su, Li
  • Rahman, Asheq

Abstract

The goodwill impairment disclosure literature examines the association between firm-and country-level factors and the disclosure of estimates and judgments used in the goodwill impairment test under International Accounting Standard 36. Although the accounting literature provides competing predictions about the relation between firm life cycle and these disclosures, prior studies did not explore the role of firm life cycle in these disclosures. This paper fills in this gap in the literature, and documents that, in Australia, these disclosures vary by life cycle stages and that firm size moderates this association. We, however, find that the differences are more pronounced for some disclosure items than for others.

Suggested Citation

  • Kabir, Humayun & Su, Li & Rahman, Asheq, 2020. "Firm life cycle and the disclosure of estimates and judgments in goodwill impairment tests: Evidence from Australia," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(3).
    • Handle: RePEc:eee:jocaae:v:16:y:2020:i:3:s1815566918300729
    DOI: 10.1016/j.jcae.2020.100207
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    More about this item

    Keywords

    Goodwill impairment; Firm life cycle; Accounting estimates and judgments; Note disclosures; Disclosure regulation; Australia;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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