Auditors’ Perceptions of Goodwill Write-Offs Under IFRS

Pajunen, Kati; Saastamoinen, Jani

doi:10.2139/ssrn.1993014

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Auditors’ Perceptions of Goodwill Write-Offs Under IFRS

Do auditors perceive that there exists earnings management in goodwill accounting under IFRS?: Finnish evidence March 2013, Managerial Auditing Journal 28(3), 245-260.

26 Pages Posted: 29 Jan 2012 Last revised: 8 Nov 2019

See all articles by Kati Pajunen

Jani Saastamoinen

University of Eastern Finland - Department of Business

Date Written: January 27, 2012

Abstract

In this paper, we explore auditors’ perceptions of goodwill accounting under IFRS with a survey of Finnish KHT-certified auditors in 2011. Exploratory factor analysis indicates that auditors are divided in two distinct groups: one group has a favorable attitude towards the IFRS procedures of goodwill accounting, while the other group sees that managerial interests affect goodwill impairment decisions. A binary choice model shows that Big 4 auditors are more likely to belong to the favorable group.

Keywords: IFRS, goodwill, auditors

Suggested Citation: Suggested Citation

Pajunen, Kati and Saastamoinen, Jani, Auditors’ Perceptions of Goodwill Write-Offs Under IFRS (January 27, 2012). Do auditors perceive that there exists earnings management in goodwill accounting under IFRS?: Finnish evidence March 2013, Managerial Auditing Journal 28(3), 245-260., Available at SSRN: https://ssrn.com/abstract=1993014 or http://dx.doi.org/10.2139/ssrn.1993014