IDEAS home Printed from https://ideas.repec.org/a/taf/acceur/v13y2016i3p353-379.html
   My bibliography  Save this article

Insights on CFOs’ Perceptions about Impairment Testing Under IAS 36

Author

Listed:
  • Francesco Mazzi
  • Giovanni Liberatore
  • Ioannis Tsalavoutas

Abstract

We survey CFOs of Italian listed companies and examine their views on the complexities involved in implementing IAS 36 requirements and the perceived usefulness of national guidelines aiming at assisting preparers in this respect. We find that IAS 36 is perceived as an atypical standard among IFRS, it demands subjective interpretation, its requirements can be made adaptable to managerial needs and do not limit creative accounting. Further, respondents do not see a strong link between IAS 36 disclosure requirements and market variables, except for stock returns. Moreover, the impairment testing process became more difficult during the recent financial crisis and guidelines issued by the Italian authorities do not appear to assist in implementing the recoverable amount estimation process or compliance with mandatory disclosure. The respondents explicitly call for a revision in IAS 36 and/or issuance of separate guidance. These findings inter alia respond directly to the IASB’s current quest on financial statements preparers’ concerns about the application of the IAS 36 requirements.

Suggested Citation

  • Francesco Mazzi & Giovanni Liberatore & Ioannis Tsalavoutas, 2016. "Insights on CFOs’ Perceptions about Impairment Testing Under IAS 36," Accounting in Europe, Taylor & Francis Journals, vol. 13(3), pages 353-379, September.
    • Handle: RePEc:taf:acceur:v:13:y:2016:i:3:p:353-379
    DOI: 10.1080/17449480.2016.1244341
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17449480.2016.1244341
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17449480.2016.1244341?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Capkun, Vedran & Collins, Daniel W. & Jeanjean, Thomas, 2013. "The Effect of IAS/IFRS Adoption on Earnings Management (Smoothing): A Closer Look at Competing Explanations," HEC Research Papers Series 1170, HEC Paris.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guermazi, Walid & Halioui, Khamoussi, 2020. "Do differences in national cultures affect cross-country conditional conservatism behavior under IFRS?," Research in International Business and Finance, Elsevier, vol. 52(C).
    2. Patrizia Gazzola & Stefano Amelio & Fragkoulis Papagiannis & Elena-Madalina Vatamanescu, 2019. "Financial Reporting in European Football Teams: A Disclosure Analysis of Player Registrations," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(4), pages 182-206, October.
    3. Mazzi, Francesco & Slack, Richard & Tsalavoutas, Ioannis, 2018. "The effect of corruption and culture on mandatory disclosure compliance levels: Goodwill reporting in Europe," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 31(C), pages 52-73.
    4. Alain Schatt & Leonidas Doukakis & Corinne Bessieux-Ollier & Elisabeth Walliser, 2016. "Do Goodwill Impairments by European Firms Provide Useful Information to Investors?," Accounting in Europe, Taylor & Francis Journals, vol. 13(3), pages 307-327, September.
    5. Francesco Mazzi & Paul André & Dionysia Dionysiou & Ioannis Tsalavoutas, 2017. "Compliance with goodwill-related mandatory disclosure requirements and the cost of equity capital," Accounting and Business Research, Taylor & Francis Journals, vol. 47(3), pages 268-312, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Theresia Dwi Hastuti & Imam Ghozali & Etna Nur Yuyetta, 2016. "The Effect of International Financial Reporting Standars on the Real Earnings Management and Internal Control Structure as a Moderating Variable," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1807-1814.
    2. Wan Razazila Wan Abdullah & Enny Nurdin Sutan Maruhun & Masetah Ahmad Tarmizi & Liyana Ab. Rahman, 2018. "Mitigating Earnings Management: Adoption of IFRS and Corporate Governance Practices in Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(2), pages 760-772, February.
    3. Rabiu Saminu Jibril, 2019. "The Impact of International Financial Reporting Stanadard (IFRS) Adoption on Accounting Quality in Nigerian Listed Money Deposit Banks," Applied Finance and Accounting, Redfame publishing, vol. 5(1), pages 49-57, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acceur:v:13:y:2016:i:3:p:353-379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAIE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.