Recognition and disclosure of impairment in China
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Authors
Wang, Jing
Hooper, Keith
Hooper, Keith
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Degree
Grantor
Date
2014
Supervisors
Type
Journal Article
Ngā Upoko Tukutuku (Māori subject headings)
Keyword
China
disclosure
listed companies
International financial reporting standards
impairment
goodwill
disclosure
listed companies
International financial reporting standards
impairment
goodwill
ANZSRC Field of Research Code (2020)
Citation
Wang, J., and Hooper, K. (2014). Recognition and disclosure of impairment in China. Corporate Ownership & Control Journal, 12(1), pp.709-716
Abstract
This paper aims to examine the extent of goodwill impairment in listed companies of China and the audited disclosure of of goodwill. China is an important adopter of International Financial Standards but the question remains as a recent adopter, to what extent contentious issues such as goodwill impairment are implemented. The research analyzes the financial and share market information gathered from the top 50 companies listed on the Shanghai Stock Exchange. The findings reveal that goodwill amortization has been discontinued and replaced by goodwill impairment, but interestingly the Big Four Western audit firms, with a plethora of clients are less likely to be intimidated by Chinese managers into ignoring impairment than small local firms, which may be more dependent on these large Chinese corporations for their existence. However findings indicate that negative finacial and share market information show some correlation with goodwill impairment when impairment occurs. The most significant finding is that the analysis reveals that there remains a wider problem with adequate disclosure in the notes to the accounts as to whether and why goodwill should be impaired or not.
Publisher
Virtus Interpress
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Virtus Interpress
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