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The impact of different goodwill accounting methods on stock prices: A comparison of amortization and impairment-only methodologies

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  • Bagna, Emanuel
  • Ramusino, Enrico Cotta
  • Ogliari, Matteo

Abstract

In March 2020, the IASB issued a discussion paper – ‘Business Combinations – Disclosures, Goodwill and Impairment’ – which discussed, inter alia, whether to introduce a sort of counterreformation of IAS 36 that might lead to the reintroduction of goodwill amortization. Among other things, the IASB, leveraging key findings from academic research, questioned a) the disclosure provided by entities applying IFRS 3 requirements and b) the timing of impairment write-downs and their overal11Https://www.ifrs.org/projects/work-plan/goodwill-and-impairment/#published-documents.l magnitude.

Suggested Citation

  • Bagna, Emanuel & Ramusino, Enrico Cotta & Ogliari, Matteo, 2023. "The impact of different goodwill accounting methods on stock prices: A comparison of amortization and impairment-only methodologies," International Review of Financial Analysis, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:finana:v:85:y:2023:i:c:s1057521922003829
    DOI: 10.1016/j.irfa.2022.102432
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