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Goodwill under IFRS: Relevance and disclosures in an unfavorable environment

Author

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  • Baboukardos, Diogenis
  • Rimmel, Gunnar

Abstract

The accounting treatment of purchased goodwill under IFRS has been severely criticized due to the extensive use of fair value accounting. The purpose of this study is to enrich the ongoing debate upon this issue by drawing attention to the market valuation implications of goodwill in a country outside the Anglo-Saxon accounting paradigm, where the application of fair value accounting has been seen as more problematic. The results indicate that, in the case of purchased goodwill, fair value accounting generates relevant accounting numbers but only in companies that comply highly with IFRS disclosure requirements.

Suggested Citation

  • Baboukardos, Diogenis & Rimmel, Gunnar, 2014. "Goodwill under IFRS: Relevance and disclosures in an unfavorable environment," Accounting forum, Elsevier, vol. 38(1), pages 1-17.
  • Handle: RePEc:eee:accfor:v:38:y:2014:i:1:p:1-17
    DOI: 10.1016/j.accfor.2013.11.001
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    References listed on IDEAS

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    Cited by:

    1. Musa Yelwa Abubakar & Nasiru Abdulsallam & Muhammad Yusuf Alkali, 2017. "The Impact of the New Accounting Reporting Among Listed Firms in Nigerian Stock Market," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 4(1), pages 1-9.
    2. repec:eee:jiaata:v:29:y:2017:i:c:p:118-126 is not listed on IDEAS
    3. Nicola Giuseppe Castellano & Katia Corsi & Roberto Del Gobbo, 2015. "Goodwill Disclosure in Europe. Profiles of disclosing companies," Eastern European Business and Economics Journal, Eastern European Business and Economics Studies Centre, vol. 1(2), pages 32-65.
    4. repec:eeb:15v1n2:v:1:y:2015:i:2:p:32-65 is not listed on IDEAS

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