.资产减值认定及会计问题研究 外文原文

GOODWILLIMPAIRMENTANASSESSMENTOFDISCLOSUREQUALITYANDCOMPLIANCELEVELSBYLARGELISTEDAUSTRALIANFIRMSTYRONEMCARLINNIGELFINCHWALKER,1938SOME,APPARENTLYEXASPERATEDWITHTHESLIPPERINESSOFGOODWILLASACONSTRUCTTHOUGHTITOUGHTTOBEEXPUNGEDFROMTHEFINANCIALSTATEMENTSASSOONASITHADCOMEINTOEXISTENCECHAMBERSSUPPORTEDTHISAPPROACH,OBJECTINGTOGOODWILLSRIGHTTOAPLACEONTHEBALANCESHEETBYREASONOFITSLACKOF“SEVERABILITY”ANDTOHISEYESLACKOFCAPACITYTOCONTRIBUTETOWHATHETERMEDTHE“ADAPTABILITYOFTHEFIRM”CHAMBERS,1966,P218MILLERWOULDALSOHAVECONSIGNEDGOODWILLTOIMMEDIATEWRITEDOWNSUCHTREATMENT,HEARGUED,WASTHELEASTWORSTMEANSOFRESOLVINGTHEFATEOFANILLEGITIMATECREATUREBORNOFAWHOLLYINADEQUATEFRAMEWORKFORTHEAGGREGATIONOFASSETSMILLER,1973GYNTHER,ONTHEOTHERHAND,THOUGHTITABSURDTOENGAGEINRITUALSOFMANDATORYAMORTISATIONANDWRITEDOWNOFGOODWILLTAKINGTHEVIEWTHATITCOULDANDOUGHTASCONFIDENTLYASSERTITSMEMBERSHIPOFTHEONBALANCESHEETASSETCLUBASOTHERLESSCOLOURFULACTORSOPTIMISTICABOUTRAPIDADVANCEMENTSINMEASUREMENTTECHNIQUES,HESAWNOOBJECTIONTOTHERECOGNITIONVIAACONTINUOUSREVALUATIONREGIMEEVENOFTHATMUCHDREADEDSUBSPECIES,INTERNALLYGENERATEDGOODWILLGYNTHER,1969GIVENTHEMAELSTROMEVIDENTINTHECONCEPTUALSPHERE,ITISPERHAPSUNSURPRISINGTHATCONSIDERABLETURBULENCEHASLONGBEENCLEARLYEVIDENTINTHEWORLDOFPRACTICEEARLYEDITIONSOFMONTGOMERYSAUDITING2FINGERGOODWILLASAFAVOUREDTOOLOFWATEREDSTOCKFRAUDSTERSANDTHEIRFELLOWTRAVELLERS,SUGGESTINGWIDESPREADLICENTIOUSNESSINCLUDINGTHECAPITALISATIONOFOPERATINGLOSSESTOGOODWILLONTHESPURIOUSTHEORYTHATTHESEHADBEENINCURREDFORTHEFUTUREECONOMICBETTERMENTOFTHEENTERPRISEINQUESTIONADDADIRTYPOOL,WRITEOFFAGAINSTRESERVES,INCANTEXTRAORDINARYEXPENSE,INVERTTHESUMOFTHEYEARSDIGITS,MISALLOCATEPURCHASECONSIDERATIONTOIDENTIFIABLEINTANGIBLES,ABOUTFACEANDCHANNELAWAYFROMTHESEBACKTOGOODWILL,TRIMCASHGENERATINGUNITPOPULATIONS,MASSAGEGROWTHASSUMPTIONS,COMPRESSDISCOUNTRATESROUNDANDROUNDTHECAULDRONGOGIBSONWINESDAYMICALLEFLONERGAN,2006YETINMATTERSPERTAININGTOTHEREGULATIONOFFINANCIALREPORTING,HOPEEVIDENTLYSPRINGSETERNALWHATEVERHADTRANSPIREDHISTORICALLY,ACLEARBREAKWITHTHEPASTWASMADEWHENITBECAMEAREQUIREMENTATLAWTHATINTERNATIONALFINANCIALREPORTINGSTANDARDSIFRSWOULDINAUSTRALIABETHEREQUIREDBASISFORTHEPREPARATIONOFFINANCIALSTATEMENTS3FORALLREPORTINGPERIODSBEGINNINGONORAFTERJANUARY12005INMANYINSTANCESTHETRANSITIONTOIFRSRESULTEDINVERYLITTLEACTUALCHANGETHISWASNOTSOINTHECASEOFTHENEWRULESPERTAININGTOGOODWILLACCOUNTING,WHICHDIFFEREDRADICALLYFROMTHEIRPREDECESSORSCONSEQUENTLY,INFORMEDBYTHETURBULENTHISTORYOFGOODWILLACCOUNTINGPRACTICEANDTHEORY,ITISTHEOBJECTIVEOFTHISPAPERTOTAKETHEOPPORTUNITYAFFORDEDBYTHEEMERGENCEOFTHEFIRSTSUBSTANTIALSAMPLEOFFINANCIALSTATEMENTSPREPAREDBYLARGELISTEDAUSTRALIANCOMPANIESUNDERIFRSTOPEERINTOTHISBRAVEANDCOMPLEXNEWDOMAINWITHAVIEWTOFORMINGANIMPRESSIONOFITSQUALITIESINPURSUINGTHISOBJECTIVE,THEREMAINDEROFTHISPAPERISSTRUCTUREDASFOLLOWSSECTION2PROVIDESABRIEFREVIEWOFKEYDEVELOPMENTSINTHEREGULATIONOFGOODWILLACCOUNTINGANDREPORTINGINAUSTRALIATODATESECTION3SETSOUTDETAILSOFTHEDATASAMPLEANDRESEARCHMETHODOLOGYEMPLOYEDSECTION4CONSISTSOFADISCUSSIONOFTHERESULTSOFTHESTUDY,WHILESECTION5CONTAINSSOMECONCLUSIONSANDSUGGESTSSOMEIMPLICATIONSOFTHISSTUDYFORPRACTICEANDPOTENTIALFURTHERRESEARCH2OVERVIEWOFGOODWILLREPORTINGARRANGEMENTSINAUSTRALIAALTHOUGHGOODWILLHADFIGUREDASANELEMENTOFFINANCIALREPORTSINAUSTRALIAFORANEXTENDEDPERIODSTANDISH,1972,NOREPORTINGSTANDARDDEALINGWITHGOODWILLEXISTEDINTHEJURISDICTIONUNTILTHEISSUEINMARCH19844OFSTATEMENTOFACCOUNTINGSTANDARDSAAS18,ACCOUNTINGFORGOODWILL,BYTHEAUSTRALIANSOCIETYOFACCOUNTANTS5JOINTLYWITHTHEINSTITUTEOFCHARTEREDACCOUNTANTSINAUSTRALIA6PRIORTOTHATTIME,ANALMOSTPERFECTREGULATORYVACUUMSURROUNDEDFINANCIALREPORTINGARRANGEMENTSFORGOODWILLINAUSTRALIA,THEREBEING,INADDITIONTOALACKOFACCOUNTINGSTANDARDSONTHEMATTER,NOEXPRESSREQUIREMENTSFROMOTHERQUARTERSSUCHASSTOCKEXCHANGELISTINGRULESORTHECOMPANIESACTTHISSETTHEAUSTRALIANLANDSCAPEATODDSWITHTHEPOSITIONINOTHERJURISDICTIONS,FOREXAMPLETHEUNITEDSTATES,WHEREPRONOUNCEMENTSPERTAININGTOGOODWILLHADEXISTEDFORSEVERALDECADESFOREXAMPLE,CHAPTER5OFACCOUNTINGRESEARCHBULLETINARB43,ISSUEDIN1953,ORAPB17,ISSUEDIN1970CONSEQUENTLY,PRIORTOTHEADVENTOFREGULATIONINAUSTRALIA,AMELANGEOFCONFLICTINGPRACTICESEXISTEDGIBSONWOOLF1989THISFORMOFREGULATORYARBITRAGEWASPOSSIBLEBECAUSEWHEREASABINDINGACCOUNTINGSTANDARDEXISTEDINRELATIONTOGOODWILL,NOSTANDARDGOVERNEDREPORTINGREQUIREMENTSFORIDENTIFIABLEINTANGIBLESTHUS,WHILEAMORTISATIONOFGOODWILLAGAINSTEARNINGSWASAREQUIREMENTOFASRB1013,NOSUCHEXPRESSREQUIREMENTEXISTEDINRELATIONTOIDENTIFIABLEINTANGIBLESVALUEASCRIBEDTOTHESEASSETSCOULDTHEREFORETHEORETICALLYREMAININDEFINITELYUNTRAMMELLEDNOTINGTHISPRACTICE,THEAUSTRALIANACCOUNTINGRESEARCHFOUNDATIONAARFISSUEDACCOUNTINGGUIDANCERELEASENO5,STIPULATINGTHATALLNONCURRENTASSETS,TANGIBLEORINTANGIBLEOUGHTBEWRITTENOFFAGAINSTEARNINGSONASYSTEMATICBASISOVERTHEPERIODDURINGWHICHBENEFITSATTRIBUTABLETOTHEITEMSINQUESTIONWEREEXPECTEDTOARISELACKINGLEGALFORCE,THECOMPLIANCERESPONSEWASUNDERWHELMINGGOODWINIADESCRIPTIONOFEACHKEYASSUMPTIONONWHICHMANAGEMENTHASBASEDITSCASHFLOWPROJECTIONSFORTHEPERIODCOVEREDBYTHEMOSTRECENTBUDGETS/FORECASTSKEYASSUMPTIONSARETHOSETOWHICHTHEUNITSGROUPOFUNITSRECOVERABLEAMOUNTISMOSTSENSITIVE24IIADESCRIPTIONOFMANAGEMENTSAPPROACHTODETERMININGTHEVALUESASSIGNEDTOEACHKEYASSUMPTION,WHETHERTHOSEVALUESREFLECTPASTEXPERIENCEOR,IFAPPROPRIATE,ARECONSISTENTWITHEXTERNALSOURCESOFINFORMATION,AND,IFNOT,HOWANDWHYTHEYDIFFERFROMPASTEXPERIENCEOREXTERNALSOURCESOFINFORMATION25IIITHEPERIODOVERWHICHMANAGEMENTHASPROJECTEDCASHFLOWSBASEDONFINANCIALBUDGETS/FORECASTSAPPROVEDBYMANAGEMENTAND,WHENAPERIODGREATERTHANFIVEYEARSISUSEDFORACASHGENERATINGUNITGROUPOFUNITS,ANEXPLANATIONOFWHYTHATLONGERPERIODISJUSTIFIED26IVTHEGROWTHRATEUSEDTOEXTRAPOLATECASHFLOWPROJECTIONSBEYONDTHEPERIODCOVEREDBYTHEMOSTRECENTBUDGETS/FORECASTS,ANDTHEJUSTIFICATIONFORUSINGANYGROWTHRATETHATEXCEEDSTHELONGTERMAVERAGEGROWTHRATEFORTHEPRODUCTS,INDUSTRIES,ORCOUNTRYORCOUNTRIESINWHICHTHEENTITYOPERATES,ORFORTHEMARKETTOWHICHTHEUNITGROUPOFUNITSISDEDICATED27ANDVTHEDISCOUNTRATESAPPLIEDTOTHECASHFLOWPROJECTIONS28INSPECTIONOFTHEASSUMPTIONSMADEINRELATIONTOKEYFACTORSSUCHASDISCOUNTRATES,GROWTHRATES,FORECASTPERIODSANDTERMINALVALUEPERIODSSUPPORTSTHEDEVELOPMENTOFAMORENUANCEDCOMPREHENSIONOFTHEDEGREEOFCONSERVATISMORAGGRESSIONINHERENTINTHEDEVELOPMENTOFVALUEINUSEESTIMATES,MEANINGTHATTHESEAREALSOOFPRIMARYINTERESTINDEVELOPINGANUNDERSTANDINGOFTHEOPERATIONOFTHEGOODWILLREPORTINGREGIMECONSEQUENTLY,ANASSESSMENTOFTHEDISCLOSURESRELATINGTOBOTHDISCOUNTRATESANDGROWTHASSUMPTIONSMADEBYSAMPLEFIRMSPURSUANTTOAASB136ISREPORTEDINSECTIONFOUR,BELOWINORDERTOGENERATEQUALITYASSESSMENTS,ITWASNECESSARYTODEVELOPACOMPLIANCEANDDISCLOSUREQUALITYTAXONOMYFORBOTHDISCOUNTRATEANDGROWTHRATEBASEDDISCLOSURESINRELATIONTODISCOUNTRATEDISCLOSURES,THETAXONOMYAPPLIEDREQUIREDTHEALLOCATIONOFEACHSAMPLEFIRMTOONEOFFOURDIMENSIONSBEING“MULTIPLEEXPLICITDISCOUNTRATES”,“SINGLEEXPLICITDISCOUNTRATES”,“RANGEOFDISCOUNTRATES”AND“NOEFFECTIVEDISCLOSURE”ALLOCATIONOFAFIRMTOTHEFIRSTOFTHESECATEGORIESINDICATEDTHATTHEFIRMWASFULLYCOMPLIANTWITHTHEREQUIREMENTSOFAASB136INRELATIONTODISCOUNTRATEDISCLOSURES,ANDTHATTHEDEGREEOFTRANSPARENCYINHERENTINITSDISCLOSURESWASSUFFICIENTTOALLOWANEXTERNALANALYSTTODEVELOPMEANINGFULINSIGHTSINTOTHEPROCESSOFIMPAIRMENTTESTINGEMPLOYEDBYTHESAMPLEFIRMFIRMSASSIGNEDTOTHISCATEGORYPROVIDEDDETAILSOFTHESPECIFICDISCOUNTRATEUSEDTODISCOUNTCASHFLOWSFORTHEPURPOSEOFIMPAIRMENTTESTINGFOREACHDEFINEDCGU,ANDUSEDVARYINGDISCOUNTRATESASTHERISKCHARACTERISTICSOFCGUSVARIEDFIRMSWEREASSIGNEDTOTHESECONDCATEGORY“SINGLEEXPLICITDISCOUNTRATE”WHERETHEYPROVIDEDDETAILSOFASPECIFICDISCOUNTRATEFOREACHCGU,BUTTHEREWASNOOBSERVEDVARIATIONINDISCOUNTRATESASSIGNEDTOCGUS,EVENTHOUGHCGURISKLEVELSWEREARGUABLYDIFFERENTTHEQUALITYOFCOMPLIANCEANDDISCLOSUREFORFIRMSINTHISCATEGORYWASASSESSEDASLOWERTHANTHATOFFIRMSINTHEFIRSTCATEGORYFIRMSWEREASSIGNEDTOTHETHIRDCATEGORY“RANGEOFDISCOUNTRATES”,WHERETHEYPROVIDEDDETAILSOFDISCOUNTRATESEMPLOYEDFORTHEPURPOSEOFRECOVERABLEAMOUNTMODELLINGANDIMPAIRMENTTESTING,BUTRATHERTHANSPECIFYINGAPARTICULARDISCOUNTRATEUSEDINTHECONTEXTOFTESTINGFORIMPAIRMENTINAPARTICULARCGU,SIMPLYPROVIDEDDETAILSOFARANGEOFDISCOUNTRATESUSEDACROSSARANGEOFCGUSITISQUESTIONABLEWHETHERTHISPRACTICEFULFILSTHEDISCLOSUREREQUIREMENTSSTIPULATEDUNDERAASB136,ANDITISCLEARTHATTHEQUALITYOFTHISFORMOFDISCLOSUREISLOWERTHANINCATEGORIESONEANDTWO,ABOVEFINALLY,WHERETHEDEGREEOFINFORMATIONPROVIDEDINRELATIONTODISCOUNTRATESWASSOLIMITEDTHATITWOULDNOTSUSTAINANYMEANINGFULEXTERNALEVALUATION,FIRMSWEREASSIGNEDTOAFOURTHCATEGORY,LABELLED“NOEFFECTIVEDISCLOSURE”THESEFIRMSWEREJUDGEDNOTTOHAVECOMPLIEDWITHTHERELEVANTREQUIREMENTSOFAASB136,ANDTHEQUALITYOFTHEIRDISCLOSURESWASPOORINCONTEMPLATINGTHEQUALITYOFDISCLOSURESRELATINGTOGROWTHRATESASREQUIREDUNDERAASB136,ASIMILARMETHODOLOGYWASEMPLOYED,WITHFIRMSALSOCHARACTERISEDACCORDINGTOAFOURPOINTTAXONOMY,ANCHOREDATTHEHIGHQUALITYENDBYTHECATEGORY“MULTIPLEGROWTHRATESANDPERIODSFOREACHCGU”AND“NOEFFECTIVEDISCLOSURE”ATTHELOWQUALITYENDTWOINTERMEDIATECATEGORIES“SINGLEGROWTHRATEANDPERIODFORALLCGUS”AND“PARTIALDISCLOSUREONLY”INTHATORDEROFASSESSEDQUALITYFILLEDOUTTHESCALETHERESULTSOFTHEANALYTICALPROCEDURESEMPLOYEDFORTHEPURPOSESOFTHESTUDYAREREPORTEDINSECTION4,BELOW4RESULTSANDDISCUSSIONTHEFIRSTGROUPOFANALYTICALPROCEDURESPERFORMEDONTHEDATAGATHEREDFORTHISSTUDYFOCUSEDONTHEUSEOFCGUSASANELEMENTOFTHEIMPAIRMENTTESTINGPROCESSATHRESHOLDQUESTIONOFINTERESTWASTHEDEGREETOWHICHTHETOTALREPORTEDVALUEOFEACHSAMPLEFIRMSGOODWILLCOULDBECOMPLETELYRECONCILEDTOTHESUMOFTHEGOODWILLVALUESDISCLOSEDASHAVINGBEENALLOCATEDTHATFIRMSDEFINEDCGUSINSPECTIONOFTHEFINANCIALREPORTSOFTHEFIFTYFIRMSCOMPRISINGTHEFINALRESEARCHSAMPLEREVEALEDTHREEDISTINCTCLUSTERSOFPRACTICETHEFIRSTANDDOMINANTCLUSTERCOMPRISED41FIRMSFORWHICHARECONCILIATIONOFTHETYPEDESCRIBEDABOVEWASPOSSIBLETHESEWEREASSESSEDASBEINGFULLYCOMPLIANTWITHTHEDISCLOSUREREQUIREMENTSOFAASB136THESECONDCLUSTERCOMPRISED3FIRMSINRELATIONTOWHICHALLGOODWILLBARANIMMATERIALPORTION29HADBEENALLOCATEDTOACGUTHESEFIRMSWEREASSESSEDASBEINGOSTENSIBLYCOMPLIANTWITHTHEDISCLOSUREREQUIREMENTSOFAASB136THETHIRDCLUSTERCOMPRISED6FIRMSWHEREITWASNOTPOSSIBLEINANYMEANINGFULWAYTODRAWALINKBETWEENTHEVALUEOFREPORTEDGOODWILLANDANYOFTHEFIRMSDEFINEDCGUSTHESEFIRMSWEREASSESSEDNOTTOHAVECOMPLIEDWITHTHEREQUIREMENTSOFAASB136THESEDETAILSARESETOUTINTABLE2,BELOWALTHOUGHTHEDIFFERENCEBETWEENTHEFIRMSCLASSIFIEDASFULLYANDOSTENSIBLYCOMPLIANTTURNSONTHEFACTTHATINTHEFIRSTCATEGORYTOTALFIRMGOODWILLCANBERECONCILEDTOTHESUMOFGOODWILLALLOCATEDTOCGUSWHEREASINTHESECONDIMMATERIALDIFFERENCESBETWEENTOTALFIRMGOODWILLANDTHEDOLLARVALUEOFGOODWILLALLOCATEDTOCGUSARISE,ITISNONETHELESSARGUEDTHATTHEQUALITYOFDISCLOSUREOFTHOSEFIRMSINTHEFIRSTCATEGORYISHIGHERTHANTHATOFTHOSEINTHESECONDANZBANKREPRESENTSACASEINPOINTASAT2006,ANZREPORTEDTOTALGOODWILLOF29BILLIONALLOFTHISBAR72MILLIONWASALLOCATEDTOACGUACCORDINGTOTHELETTEROFTHESTANDARD,THE72MILLIONNOTALLOCATEDTOACGUORITSSUBCOMPONENTSISNOTMATERIALWHENJUDGEDAGAINSTTHETOTALDOLLARVALUEOFTHATORGANISATIONSGOODWILLHENCEACASECANBEMADETHATNOTWITHSTANDINGAFAILURETOFULLYALLOCATEGOODWILLTOCGUS,THEORGANISATIONSDISCLOSURESARENONETHELESSCOMPLIANTHOWEVER,TECHNICALCOMPLIANCEANDDISCLOSUREQUALITYARENOTNECESSARILYFULLYCONCOMITANTCONSTRUCTSTHEAMOUNTUNRECONCILEDINTHISCASESTILLREPRESENTSASUBSTANTIALSUM31ANDTHEDEGREEOFCLARITYACHIEVEDINTHEFINANCIALSTATEMENTSWOULDARGUABLYHAVEBEENIMPROVEDHADACOMPLETERECONCILIATIONBEENPOSSIBLEHOWEVER,THEGREATESTSURPRISEINTHEDATALAYNOTINTHEFACTTHATTHEREWEREASMALLNUMBEROFINSTANCESINWHICHTHEREWASSUBSTANTIALTHOUGHNOTTOTALRECONCILIATIONBETWEENTOTALRECOGNISEDGOODWILLANDTHESUMOFCGUGOODWILLALLOCATIONS,BUTRATHERINTHEEXISTENCEOFSIXOFFIFTY12MEMBERSOFTHESAMPLEINWHICHNOMEANINGFULDISCLOSUREINRELATIONTOTHEALLOCATIONOFGOODWILLTOCGUSISEVIDENTINONEOFTHESESIXFIRMS,MACQUARIEBANK,ITISPOSSIBLETHATTHISCANBEEXPLAINEDBYREASONOFAMATERIALITYBASEDARGUMENTTHOUGHTHEACCOUNTSARESIMPLYSILENTONTHEISSUEANDTHISEXPLANATIONISJUDGEDINANYEVENTTOBEDEBATEABLEINALLTHECIRCUMSTANCES32HOWEVER,INTHEREMAININGFIVECASESJUDGEDASINSTANCESOFNONCOMPLIANCE,THEREISNOAPPARENTEXPLANATIONATALLFORTHELACKOFALLOCATIONOFGOODWILLTOCGUS33THISMEANSTHATFINANCIALSTATEMENTSUSERSARELEFTTOTAKEENTIRELYONFAITHTHENOTIONTHATTHEREHASNOT,INTHEREPORTINGPERIOD,BEENANIMPAIRMENTOFGOODWILLFURTHER,READERSOFTHEFINANCIALSTATEMENTSISSUEDBYTHESEORGANISATIONSHAVELESSINFORMATIONWITHWHICHTOFORMJUDGEMENTSABOUTFUTUREPOTENTIALIMPAIRMENTEVENTSTHANTHERECIPIENTSOFFINANCIALSTATEMENTSPREPAREDBYFULLYCOMPLIANTFIRMSOFCOURSE,ASARGUEDINTHEPREVIOUSSECTIONOFTHISPAPER,THEFAILURETOFULLYALLOCATERECOGNISEDGOODWILLTOALLDEFINEDCGUSISNOTTHEONLYNOTABLERISKISSUEWITHTHESEOBJECTSPERHAPSAGREATERCHALLENGETOTRANSPARENCYANDINFORMATIONQUALITYSTEMSFROMTHEPOSSIBILITYTHATANORGANISATIONALLOCATESGOODWILLTOTOOFEWCGUSTHISCOULDRESULTINTHEAVOIDANCEOFIMPAIRMENTCHARGESWHERETHEYWOULDOTHERWISEBENECESSARYBYREASONOFTHEVOLATILITYSMOOTHINGEFFECTOFCOMBININGNONPERFECTLYCORRELATEDASSETPORTFOLIOS,EVENTHOUGHTHECONSTITUENTELEMENTSOFTHESEAGGREGATEDASSETPORTFOLIOSCOULDBEARGUEDTOBECAPABLEOFGENERATINGINDEPENDENTSTREAMSOFCASHFLOWSATAMUCHLOWERLEVELOFAGGREGATIONTHANTHATIMPLIEDBYAREPORTINGENTITYINCHOOSINGTODEFINEFEWERRATHERTHANMORECGUSFORTHEPURPOSEOFIMPAIRMENTTESTINGTHUS,TESTINGFORTHEPOSSIBILITYOFINAPPROPRIATECGUDEFINITIONAGGREGATIONREPRESENTSANIMPORTANTLINEOFINQUIRYINASSESSINGTHEDEGREETOWHICHIMPAIRMENTSPURSUANTTOTHEAASB136REGIMEARELIKELYTOBERECOGNISEDINATIMELYFASHIONANDINASSESSINGTHEQUALITYANDMEANINGOFDISCLOSURESMADEBYFIRMSTHESUBJECTOFTHESTANDARDSREGIMESOMESUMMARYDATAPERTAININGTOTHISISSETOUTINTABLE3,BELOWCONTEMPLATIONOFTHESERESULTSISBESTCONTEXTUALISEDBYREFERENCETOPARAGRAPH80OFAASB136,WHICHSETSOUTTHEFRAMEWORKPURSUANTTOWHICHFIRMSDEFINECGUSFORTHEPURPOSEOFIMPAIRMENTTESTINGTHISSUGGESTSTHATCGUSORGROUPSOFCGUSTOWHICHGOODWILLISALLOCATEDFORTHEPURPOSEOFIMPAIRMENTTESTINGOUGHTREPRESENTTHELOWESTLEVELWITHINTHEFIRMATWHICHGOODWILLISMONITOREDFORINTERNALMANAGEMENTPURPOSESANDTHATTHECGUSSODEFINEDOUGHTNOTBELARGERTHANSEGMENTSASREPORTEDONBYTHEENTITYPURSUANTTOAASB114SEGMENTREPORTINGUNFORTUNATELY,ITISARGUABLETHATTHETWOLEGSOFTHISCGUDEFINITIONPROCESSHAVETHEPOTENTIALTOBEMUTUALLYCONTRADICTORY,SINCETHEREISTHEPOSSIBILITYTHATGOODWILLISINTERNALLYMONITOREDATAFARHIGHERLEVELOFAGGREGATIONTHANTHATIMPLICITINTHEBUSINESSSEGMENTSDEFINEDBYTHEFIRMTOSATISFYTHEREQUIREMENTSOFAASB114NONETHELESS,ASTARTINGPOINTFORASSESSINGTHEMANNERINWHICHFIRMSDEFINECGUSANDALLOCATEGOODWILLTOTHEMISTOASSUMETHATTHENUMBEROFBUSINESSSEGMENTSDEFINEDBYAFIRMREPRESENTSAMINIMUMVALUEFORTHEEXPECTEDNUMBEROFCGUSDEFINEDBYAFIRMITISNOTNECESSARYTHATTHISCONDITIONBEDEMONSTRATEDTOREFLECTTHEUNDERLYINGFACTUALSUBSTRATUMOFEACHFIRMTOWHICHITISAPPLIEDINORDERFORITTOYIELDPOTENTIALLYUSEFULINSIGHTSRATHER,THEUSEOFTHISCOMPARISONASANINITIALBENCHMARKALLOWSMOREREADYIDENTIFICATIONOFDISCLOSUREOUTLIERSWORTHYOFFURTHERINVESTIGATIONBEARINGTHISINMIND,THEDATAINTABLE3SUGGESTSTHATTHEREAREPLAUSIBLEREASONSFORCONCERNABOUTTHERISKOFINAPPROPRIATECGUDEFINITIONAGGREGATIONONLY16OFTHEFIRMSINTHERESEARCHSAMPLEDEFINEDMORECGUSTHANBUSINESSSEGMENTSSUGGESTINGALOWERRISKOFAGGREGATIONCONCERNS,WHILEINAFURTHER28OFOBSERVATIONS,THENUMBEROFDEFINEDCGUSWASEQUALTOTHENUMBEROFDEFINEDBUSINESSSEGMENTSHOWEVER,INMORETHANHALFOFALLCASES,THENUMBEROFCGUSDEFINEDWASLOWERTHANTHENUMBEROFDEFINEDBUSINESSSEGMENTSINSOMECASES,ASFEWASONECGUWASDEFINED,SUGGESTINGAHEIGHTENEDRISKOFINAPPROPRIATECGUAGGREGATION,WITHALLTHEIMPLICATIONSFORTHERIGOUROFGOODWILLIMPAIRMENTTESTINGWHICHFLOWFROMTHATPHENOMENON5CONCLUSIONCOMPAREDAGAINSTTHEPREVIOUSREGIME,THEIFRSFRAMEWORKFORGOODWILLREPORTING,ACCOUNTINGANDIMPAIRMENTTESTINGHASINTRODUCEDAVERYHIGHDEGREEOFCOMPLEXITYANDDETAILTHEDISCLOSURESREQUIREDUNDERTHESTANDARDAREHIGHLYINTRICATE,AFACTORWHICHNODOUBTADDSCOSTANDRISKTOTHETASKOFPREPARINGANDAUDITINGFINANCIALSTATEMENTSHOWEVER,ITCANEQUALLYBEARGUEDTHATTHELEVELOFTRANSPARENCYACHIEVEDWHEREDISCLOSURESAREPREPAREDINCLOSEACCORDANCEWITHTHEREQUIREMENTSOFTHISNEWFRAMEWORKFARTRANSCENDSTHATWHICHRESULTEDFROMTHEAPPLICATIONOFTHEPREVIOUSREGIMEUNFORTUNATELY,THERESULTSOFTHISSTUDYSUGGESTTHATONTHEWHOLE,THISPOTENTIALFORHIGHTRANSPARENCYISNOTTRANSLATINGINTOACTUALIMPROVEMENTSINTRANSPARENCYINPRACTICERATESOFCLEARNONCOMPLIANCEWITHTHEEDICTSOFAASB136WERESURPRISINGLYHIGH,ANDCASESWHERETHETYPESOFHIGHLYSPECIFICDISCLOSURESDISCUSSEDINTHATSTANDARDWEREACTUALLYPRODUCEDWERESTRIKINGLYRARETHUSFARTHEN,THEOVERALLREPORTCARDFORAUSTRALIANFIRMSREPORTINGONGOODWILLIMPAIRMENTUNDERTHEIFRSREGIMEISMATERIALLYBLOTTEDITMAYBETHATTHISISSIMPLYTHEMANIFESTATIONOFALACKOFACCUMULATEDEXPERIENCEWITHTHEDICTATESOFTHENEWREGIME,ANDTHATTHEOBSERVEDCASESOFNONCOMPLIANCEANDTHEGENERALLYPOORDISCLOSUREQUALITYOBSERVEDINTHISSTUDYWILLEBBAWAYOVERTIMETHATISAQUESTIONOFFACTTHEANSWERTOWHICHWILLONLYBECOMEEVIDENTINFUTUREITHASNOTBEENTHEOBJECTIVEOFTHISSTUDYTOATTEMPTTOEXPLAINWHYCOMPLIANCELEVELSANDDISCLOSUREQUALITYHAVEVARIEDSOMEASURABLY,EVENINTHECONTEXTOFARELATIVELYSMALLSAMPLENODOUBTRESEARCHERSINTERESTEDINTHISPHENOMENONWILLPROBETHESEQUESTIONSINFUTUREINSEARCHOFPOSSIBLEANSWERSFORTHEPRESENT,THERESULTSOFTHISPAPERSTANDALONEANDSERVEASAREMINDERTHATNOTWITHSTANDINGTHEEXISTENCEOFINTRICATEREPORTINGRULES,AUDITINGFRAMEWORKSANDTHECONSTANTSCRUTINYOFCAPITALMARKETS,ITISASWELLNOTTOTAKETHEEXISTENCEOFREPORTINGQUALITYANDCONSISTENCYFORGRANTEDTHERESULTSALSOSERVETOREMINDACADEMICRESEARCHERSOFTHEPOTENTIALLYIMPORTANTROLETHEYCANPLAYINMONITORINGKEYECONOMICANDSOCIALINSTITUTIONSANDININFORMINGTHEPOLICYFRAMEWORKSWITHINWHICHTHESEINSTITUTIONSOPERATETHETRANSITIONTOIFRSHASOPENEDASUBSTANTIALNUMBEROFPOTENTIALLYPRODUCTIVECHANNELSFORWORKOFTHISNATURE,ANDITISTOBEHOPEDTHATMANYRESEARCHERSCAPITALISEONTHESEOPPORTUNITIESOVERCOMINGYEARSREFERENCESAUSTRALIANSTANDARDSREVIEWBOARD,APPROVEDACCOUNTINGSTANDARDASRB1013,ACCOUNTINGFORGOODWILL,APRIL1988AUSTRALIANSOCIETYOFACCOUNTANTSANDTHEINSTITUTEOFCHARTEREDACCOUNTANTSINAUSTRALIA,STATEMENTOFACCOUNTINGSTANDARDS,AAS18,ACCOUNTINGFORGOODWILL,MARCH1984BRYER,R,A,1995,“APOLITICALECONOMYOFSSAP22ACCOUNTINGFORGOODWILL”,BRITISHACCOUNTINGREVIEW,VOL274,PP283310CANNING,J,1929,THEECONOMICSOFACCOUNTANCY,THERONALDPRESSCOMPANY,NEWYORKCARNEGIE,G,ANDGIBSON,R,1987,“ACCOUNTINGFORGO