An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136

Bond, D; Govendir, B; Wells, P

An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136

Bond, D

Govendir, B

Wells, P

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Publication Type:: Journal Article
Citation:: Accounting and Finance, 2016, 56 (1), pp. 259 - 288
Issue Date:: 2016-03-01

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Field	Value	Language
dc.contributor.author	Bond, D https://orcid.org/0000-0001-5134-4469	en_US
dc.contributor.author	Govendir, B https://orcid.org/0000-0002-7112-0267	en_US
dc.contributor.author	Wells, P https://orcid.org/0000-0001-6822-4826	en_US
dc.date.issued	2016-03-01	en_US
dc.identifier.citation	Accounting and Finance, 2016, 56 (1), pp. 259 - 288	en_US
dc.identifier.issn	0810-5391	en_US
dc.identifier.uri	http://hdl.handle.net/10453/122649
dc.description.abstract	© 2016 AFAANZ. This study evaluates how managers of Australian firms are implementing the regulation requiring the impairment of assets and whether asset impairments can be categorised as non-discretionary. We find some evidence that realised asset impairments are reflective of regulatory requirements. However, for the majority of firms exhibiting at least one externally observable indicator of impairment, they are not recognising asset impairments, and recognition is often delayed. Accordingly, while realised asset impairments might be categorised non-discretionary, the timing of their recognition appears highly discretionary. There is some evidence that the realisation of asset impairments increased subsequent to transition to IFRS; however, the majority of firms with indicators of impairment are still not recognising asset impairments.	en_US
dc.relation.ispartof	Accounting and Finance	en_US
dc.relation.isbasedon	10.1111/acfi.12194	en_US
dc.subject.classification	Accounting	en_US
dc.title	An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	56	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.issue	1	en_US
pubs.publication-status	Published	en_US
pubs.volume	56	en_US

Abstract:

© 2016 AFAANZ. This study evaluates how managers of Australian firms are implementing the regulation requiring the impairment of assets and whether asset impairments can be categorised as non-discretionary. We find some evidence that realised asset impairments are reflective of regulatory requirements. However, for the majority of firms exhibiting at least one externally observable indicator of impairment, they are not recognising asset impairments, and recognition is often delayed. Accordingly, while realised asset impairments might be categorised non-discretionary, the timing of their recognition appears highly discretionary. There is some evidence that the realisation of asset impairments increased subsequent to transition to IFRS; however, the majority of firms with indicators of impairment are still not recognising asset impairments.

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http://hdl.handle.net/10453/122649