An Empirical Investigation of Compliance and Disclosure Quality Under FRS 36 for Singaporean Listed Firms

31 Pages Posted: 10 Feb 2010

See all articles by Tyrone M. Carlin

Tyrone M. Carlin

Southern Cross University; The University of Sydney Business School

Khairil Faizal Khairi

Macquarie Graduate School of Management

Nigel Finch

Saki Partners

Date Written: February 9, 2010

Abstract

Drawing on data from a sample of 168 firms listed on the Singapore Stock Exchange (SGX) over three consecutive years (2005, 2006 and 2007), this study focuses on the issue of IFRS compliance and disclosure quality. Using the requirements of FRS 36 in relation to goodwill impairment testing as the particular focal point for the analysis, the results of this study demonstrate poor levels of compliance and transparency on the part of SGX listed firms with goodwill in relation to their goodwill impairment testing processes and assumptions. This study adds to the literature by providing insights into this phenomenon from the standpoint of an advanced Asia Pacific region jurisdiction not previously subjected to scrutiny on the dimensions drawn upon for the purposes of this study and through the use of a multi-year research design. The results complement and reinforce the significance of earlier research conducted in relation to the focal phenomenon in Australia, Malaysia and New Zealand and suggest the existence of persistent cross-border difficulties with the implementation of the complex technical provisions of the IFRS goodwill impairment testing regime.

Keywords: Goodwill, Impairment, Financial reporting, Creative accounting, Singapore

JEL Classification: M40, M41

Suggested Citation

Carlin, Tyrone M. and Khairi, Khairil Faizal and Finch, Nigel, An Empirical Investigation of Compliance and Disclosure Quality Under FRS 36 for Singaporean Listed Firms (February 9, 2010). Available at SSRN: https://ssrn.com/abstract=1550416 or http://dx.doi.org/10.2139/ssrn.1550416

Tyrone M. Carlin

Southern Cross University ( email )

Lismore, New South Wales 2480
Australia

The University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia
+ 61 2 9036 7230 (Phone)
+61 2 9351 7471 (Fax)

HOME PAGE: http://sydney.edu.au/business/staff/tyronec

Khairil Faizal Khairi

Macquarie Graduate School of Management ( email )

99 Talavera Road
Sydney, NSW 2113
Australia

HOME PAGE: http://www.mq.edu.au

Nigel Finch (Contact Author)

Saki Partners ( email )

Australia

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