Subsequent accounting for goodwill and the impact to Japanese compaines

Research Project

Project/Area Number	25380608
Research Category	Grant-in-Aid for Scientific Research (C)
Allocation Type	Multi-year Fund
Section	一般
Research Field	Accounting
Research Institution	Yokohama City University
Principal Investigator	Miura Takashi 横浜市立大学, 国際マネジメント研究科, 教授 (50239183)
Co-Investigator(Kenkyū-buntansha)	張櫻馨横浜市立大学, 国際マネジメント研究科, 教授 (70404978)
Project Period (FY)	2013-04-01 – 2017-03-31
Project Status	Completed (Fiscal Year 2016)
Budget Amount *help	¥4,810,000 (Direct Cost: ¥3,700,000、Indirect Cost: ¥1,110,000) Fiscal Year 2016: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000) Fiscal Year 2015: ¥1,820,000 (Direct Cost: ¥1,400,000、Indirect Cost: ¥420,000) Fiscal Year 2014: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000) Fiscal Year 2013: ¥520,000 (Direct Cost: ¥400,000、Indirect Cost: ¥120,000)
Keywords	のれん / 減損会計 / 規則的償却 / のれんの減損 / のれん償却 / 減損処理 / 証券アナリスト予想 / 減損 / 規則償却 / 国際財務報告基準
Outline of Final Research Achievements	Subsequent accounting for goodwill has been a controversial issue for past two decades. At present, more than 150 Japanese companies have adopted IFRS and the number of firms adopting IFRS is on the increase. IFRS adopts principles-based approach, requiring greater managerial involvement in reporting choice. Though researches in Japan, mainly focus on which method is useful (i.e., amortization or impairment), researches that focus on compliance level with IAS 36 are little. The purpose of our research is to examine the impairment of goodwill reporting practices in Japan. Using a sample of 105 Japanese listed firms (141 firms/years), we found that information disclosed about impairment of goodwill is incomplete and variable across firms. In addition, the detail information that requires greater managerial judgement disclosure, such as discount rate, basis for recoverable amount seems to be omitted. As stated, there is scope for improvement in the compliance with IFRS requirements.