Subsequent accounting for goodwill and the impact to Japanese compaines

2016 Fiscal Year Final Research Report

• 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)
• Project Period (FY): 2013-04-01 – 2017-03-31
• Keywords: のれん / 減損会計 / 規則的償却

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.

Free Research Field

財務会計