Early Impressions of Australia's Brave New World of Goodwill Impairment

MGSM Working Paper No. 2007-1

26 Pages Posted: 3 Jan 2007

See all articles by Tyrone M. Carlin

Tyrone M. Carlin

Southern Cross University; The University of Sydney Business School

Nigel Finch

Saki Partners

Date Written: January 2007


The 2006 reporting year represents the first year in which substantial quantities of financial statements prepared by Australian listed corporations in accordance with the requirements of A-IFRS have become available for inspection.

It is the purpose of this paper to develop an impression of the manner in which the Australian goodwill reporting regime, AASB 136 - Impairment of Assets, has unfolded in this initial implementation period. This research focuses on the elections and disclosures made by the 20 largest Australian listed corporations and focuses on the development of a more nuanced comprehension of the degree of conservatism or aggression inherent in value in use estimates employed in their determination of impairment.

Several dimensions of the goodwill reporting regime are investigated including, the role of cash generating units (CGU), the estimation of the recoverable amounts of CGU assets, and other key factors such as discount rates, growth rates, forecast periods and terminal values.

Keywords: Goodwill, Financial Reporting, Creative Accounting, Impairment Accounting

JEL Classification: M41, G31

Suggested Citation

Carlin, Tyrone M. and Finch, Nigel, Early Impressions of Australia's Brave New World of Goodwill Impairment (January 2007). Available at SSRN: https://ssrn.com/abstract=954667 or http://dx.doi.org/10.2139/ssrn.954667

Tyrone M. Carlin (Contact Author)

Southern Cross University ( email )

Lismore, New South Wales 2480

The University of Sydney Business School ( email )

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

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

Nigel Finch

Saki Partners ( email )


Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics