Recognition of provisional goodwill: Real need or communication strategy?

IF 3.3 Q1 BUSINESS, FINANCE Journal of International Accounting Auditing and Taxation Pub Date : 2022-12-01 DOI:10.1016/j.intaccaudtax.2022.100510

Elisa Roncagliolo, Francesco Avallone

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引用次数: 1

Abstract

This study draws attention to the recognition of goodwill on a provisional basis, as allowed by International Financial Reporting Standard (IFRS) 3,“Business combinations”. We examine whether the provisional goodwill choice is motivated by market imperfections rather than the actual difficulty in the estimation of acquired assets and liabilities. We analyze a sample of business combinations concluded over the period 2014–2015 involving European companies and accounted for according to IFRS 3. Our findings suggest that the decision to account for goodwill on a provisional basis is due to the specific timing of the acquisition. In addition, the coexistence of stock market overvaluation and strong investor protection at the time of the merger and acquisition (M&A) announcement is a significant determinant of the provisional goodwill choice. Therefore, this study contributes to the current debate on accounting for goodwill as it highlights the relevance of the factors affecting the initial determination of the goodwill amount.

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确认临时商誉:实际需要还是沟通策略?

本研究提请注意国际财务报告准则第3号“企业合并”所允许的在临时基础上确认商誉。我们考察了临时商誉选择是否受到市场不完善因素的影响，而不是受到估计所获资产和负债的实际困难的影响。我们分析了2014-2015年期间涉及欧洲公司的企业合并样本，并根据IFRS 3进行核算。我们的研究结果表明，在临时基础上核算商誉的决定是由于收购的具体时间。此外，在并购公告时，股票市场估值过高和强有力的投资者保护并存是临时商誉选择的重要决定因素。因此，这项研究有助于当前关于商誉会计的辩论，因为它强调了影响商誉金额初始确定的因素的相关性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.