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008			231121b |||||||| |||| 00| 0 eng d
040			_aMSU _cMSU _erda
100	1		_aBens, Daniel A. _eauthor
245	0	4	_aThe Information content of goodwill impairments and SFAS 142 _cby Daniel A. Bens, Wendy Heltzer and Benjamin Segal
264			_aThousand Oaks, CA: _bSage Publications; _c2011.
336			_2rdacontent _atext _btxt
337			_2rdamedia _aunmediated _bn
338			_2rdacarrier _avolume _bnc
440			_aJournal of Accounting Auditing and Finance _vVolume 26, number 3,
520			_aAccounting standard setters face a perpetual challenge in balancing relevance and reliability when establishing generally accepted accounting principles. This tension is especially heightened when the nature of the economic information concerns intangible assets. This article presents exploratory evidence about standard setters’ response to this challenge by examining whether Statement of Financial Accounting Standards No. 142 (SFAS 142): Goodwill and Other Intangible Assets altered the information content of goodwill write-offs. To more accurately capture the information of goodwill write-offs, the authors first create a model to estimate expected impairments. The difference between actual write-offs and expected write-offs represents write-off surprises or unexpected goodwill write-offs. The authors document a negative and significant stock market reaction to unexpected goodwill write-offs. On a cross-sectional basis, they find that the market reaction is attenuated for firms with low information asymmetry (their proxy is a high analyst following) and for firms that find it relatively costly to implement impairment tests (their proxy is the inverse of firm size). The authors find no variation in market reaction based on firm complexity (their proxy is the number of firm segments). The negative reaction for the high information asymmetry and larger firms weakens following the adoption of SFAS 142. The latter result is consistent with SFAS 142 critics’ claims that more relevant accounting information, captured by fair value methods, is difficult to implement reliably and thus can reduce the information content of accounting reports.
650			_aFair value accounting
650			_aSFAS 142
650			_aWrite-offs
700	1		_aHeltzer, Wendy _eco-author
700	1		_aSegal, Benjamin _eco-author
856			_uhttps://doi.org/10.1177/0148558X114015
942			_2lcc _cJA
999			_c163482 _d163482