2019 Fiscal Year Research-status Report
Procyclicality of goodwill permanent retention
| Project/Area Number |
17K13827
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| Research Institution | Gakushuin University |
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Principal Investigator |
GARCIA Clemence 学習院大学, 国際社会科学部, 准教授 (60440179)
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| Project Period (FY) |
2017-04-01 – 2021-03-31
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| Keywords | goodwill / intangible assets / accounting / procyclicality / sustainability / financial regulation |
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| Outline of Annual Research Achievements |
In 2019, I focused on the preparation of the empirical part of this study. As some data about pre and post IFRS are necessary, I collected the data with the help of a research assistant.Due to a large number of M&As for IFRS companies, it still requires some preparation.However, preliminary observations are eloquent.
I also participated to the study group about IFRS implementation of the Japanese Association of International Accounting Studies, in which I explained the change in accounting treatment for goodwill in the new accounting standard. This report was presented at JAIAS conference in August 2019. A book is going to be published based on the output of the working group in 2020.
I attended several conferences, including some in the field of transfer pricing and tax law. To some extent, the results of this research about goodwill valuation will be useful to these other areas.
I also presented my research at the European Law Institute. The presentation was about equity capital, but indeed aggressive M&A strategies and valuation of goodwill were some important elements.Thanks to this presentation, the results of this research reached out unexpected audience, since the European law Institute gathers many judges and officials involved in European legislation.
Globally, this year was used to prepare some results that should be published in 2020, if Covid-19 allows for such publication.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
Until 2019, the research progressed smoothly, at the pace expected. As the empirical part requires a few years of data after IFRS adoption, the sample has progressively grown and now I am able to proceed to the analysis.The sample required hand-collection of data on top of databases. This should increase the value of this research.
For the historical and theoretical papers that I presented in 2017 and 2018, I should be able to submit them for publication in 2020.
The main concern regarding the progres is that most of the conférences in 2020 are cancelled due to Covid-19. For the next developments and publications, some delay is possible. However, this should normally not affect the core research itself.
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| Strategy for Future Research Activity |
In 2020, some research output will be published. First, the article from my presentation at the European Law Institute will be published in the European Law Review. Secondly, my report for the Japanese Association of International Accounting Studies about accounting regulation of goodwill in France will be published as a book chapter in Japanese.
Next, I need to prepare an article to summarize the empirical part about the increase of M&As and present it at conférences. Unfortunately, most of the events of 2020 were cancelled due to Covid-19. The publication of the results may be delayed to Covid-19.
Last, I presented two historical papers and one theoretical paper about accounting for goodwill. I will submit these papers for publication.
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| Causes of Carryover |
I change the method to collect data. Consequently, the database fee was reduced compared with the original assessment, but personnel cost increased.
The difference should be used in 2020 to finish preparing the data.
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