Changes in Value of Investment Opportunity Set and Goodwill Impairment

Date
2011
Authors
Zhu, Xiaomeng
Supervisor
Ramachandra, Suresh
Kabir, Humayun
Item type
Thesis
Degree name
Master of Business
Journal Title
Journal ISSN
Volume Title
Publisher
Auckland University of Technology
Abstract

The adoption of International Financial Reporting Standards (IFRSs) results in many changes in goodwill impairment accounting regime in IAS 36. This study investigates the relationship between the changes in value of firms' investment opportunities set (IOS) and the amount of goodwill impairment losses for New Zealand (NZ) listed firms since the new goodwill impairment testing regime was introduced. A pooled time-series and cross-sectional analysis is adopted in this study in order to evaluate the changes of results over the examined period. The results support that the changes in value of sample firms' IOS are negatively related to their amount of goodwill impairment losses during the examined period from the financial year 2008 to the financial year 2009.

Description
Keywords
investment opportunities set , goodwill impairment
Source
DOI
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