Impairment Test and Disclosure: An International Comparison

26 Pages Posted: 21 Feb 2013

See all articles by Cristian Carini

Cristian Carini

University of Brescia

Claudio Teodori

Independent

Monica Veneziani

University of Brescia - Department of Accounting

Laura Bosio

University of Brescia

Date Written: May 12, 2009

Abstract

Introduction of the IAS/IFRS entails important changes for European companies, characterised by different accounting systems, including assessment and accounting of the impairment test which is one of the most fundamental issues. Our attention focuses on companies listed in the main European Stock Exchange Indexes (S&P/Mib, CAC 40 and FTSE 100) in which the impairment test is one of the most critical elements of company management. After a brief presentation of the main characteristics of the IAS 36, the aim of this paper is to study the effects of IAS 36 application on financial disclosure via an empirical analysis. The level of disclosure regarding the impairment test is compared among the three indexes and is studied in greater depth (69 items). In the paper the focus is on disclosure since, as the scholars also agree, financial communication does not represent a neutral process but affects the behaviour of the recipients, and consequently that of the prepares. Consolidated financial reports of 2006 and 2007 have been analysed: empirical results confirm that there are a lot of differences in disclosure level among the three countries and between companies with and without an impairment loss.

Keywords: IAS/IFRS, impairment test, disclosure

JEL Classification: M41

Suggested Citation

Carini, Cristian and Teodori, Claudio and Veneziani, Monica and Bosio, Laura, Impairment Test and Disclosure: An International Comparison (May 12, 2009). Available at SSRN: https://ssrn.com/abstract=2221258 or http://dx.doi.org/10.2139/ssrn.2221258

Cristian Carini (Contact Author)

University of Brescia ( email )

Piazza del Mercato, 15
25122 Brescia
Italy

Claudio Teodori

Independent ( email )

Monica Veneziani

University of Brescia - Department of Accounting ( email )

Contrada Santa Chiara, n.50
Brescia
Italy

Laura Bosio

University of Brescia ( email )

Piazza del Mercato, 15
25122 Brescia
Italy

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