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Harmonization Of Goodwill Reporting Practice In The Consolidated Financial Statements Of Romanian Groups

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  • Carmen-Alexandra Baltariu
  • Andreea Cîrstea

Abstract

The purpose of this paper is to analyze the current state of consolidated reporting practice harmonization concerning the extant methods for evaluating and reporting goodwill in the consolidated financial statements of Romanian groups. In order to attain our purpose we selected financial and non- financial Romanian groups that were listed in the Bucharest Stock Exchange and we analyzed, first in a qualitative manner, for a period of five years starting 2007, the notes to their consolidated financial statements with the design to establish exactly which of the methods stated in the International Financial Reporting Standards were being used for evaluating and reporting goodwill. The quantitative analysis, based on which certain conclusions about the current state of material harmonization concerning the practice of evaluating and reporting goodwill could be extracted, was performed by using the Herfindahl Index. The results obtained by calculating the Herfindahl Index indicate that throughout the entire period taken into account the value of the Index is constant and equal to 1, meaning that with respect to goodwill reporting practice, the groups considered make use of the same method, the purchase goodwill approach. Based on the results, our conclusion is that from the point of view of goodwill reporting practice, the groups analyzed are fully harmonized.

Suggested Citation

  • Carmen-Alexandra Baltariu & Andreea Cîrstea, 2012. "Harmonization Of Goodwill Reporting Practice In The Consolidated Financial Statements Of Romanian Groups," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-1.
  • Handle: RePEc:alu:journl:v:2:y:2012:i:14:p:1
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    References listed on IDEAS

    as
    1. Ojo, Marianne, 2009. "The role of the IASB and auditing standards in the aftermath of the 2008/2009 Financial Crisis," MPRA Paper 17164, University Library of Munich, Germany.
    2. Jens Wüstemann & Sonja Wüstemann, 2010. "Why Consistency of Accounting Standards Matters: A Contribution to the Rules‐Versus‐Principles Debate in Financial Reporting," Abacus, Accounting Foundation, University of Sydney, vol. 46(1), pages 1-27, March.
    3. Ding, Yuan & Hope, Ole-Kristian & Jeanjean, Thomas & Stolowy, Herve, 2007. "Differences between domestic accounting standards and IAS: Measurement, determinants and implications," Journal of Accounting and Public Policy, Elsevier, vol. 26(1), pages 1-38.
    4. Tiron Tudor Adriana, 2010. "Disclosure Practices Concerning Consolidated Financial Statemens Of Romanians Groups Of Entites," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 601-606, July.
    5. Qu, Xiaohui & Zhang, Guohua, 2010. "Measuring the convergence of national accounting standards with international financial reporting standards: The application of fuzzy clustering analysis," The International Journal of Accounting, Elsevier, vol. 45(3), pages 334-355, September.
    6. Leandro Canibano & Araceli Mora, 2000. "Evaluating the statistical significance of de facto accounting harmonization: a study of European global players," European Accounting Review, Taylor & Francis Journals, vol. 9(3), pages 349-369.
    7. Peter Standish, 2003. "Evaluating National Capacity for Direct Participation in International Accounting Harmonization: France as a Test Case," Abacus, Accounting Foundation, University of Sydney, vol. 39(2), pages 186-210, June.
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    More about this item

    Keywords

    material accounting harmonization; consolidated financial statements; IFRSs; goodwill reporting practice;

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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