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In 2001, goodwill amortization in the US was eliminated in favor of an impairment-only approach, which, according to critics, gives managers vast discretion and opportunities for earnings management. Prior research suggests that discretionary asset write-offs are associated with economic factors and managers’ financial reporting objectives. Based on a systematic literature review, this study investigates for a comprehensive sample of US firms the determinants of goodwill write-off behavior. Regression analysis shows that write-off behavior is significantly explained by firms’ economic properties. Only in large, high-profile firms, incentives appear to be significant determinants. These findings suggest that the impairment-only approach does capture goodwill impairment at least to some extent.
Accounting: study & revision guides --- Budgeting & financial management --- Goodwill (Commerce) --- Write-offs. --- Accounting --- Charge-offs --- Write-downs --- Writedowns --- Writeoffs --- Good-will (in business, etc.) --- Business --- Intangible property --- Clean surplus (Accounting) --- Bilanzpolitik --- Empirical --- Firmenwert --- Generally Accepted Accounting Principles --- Geschäftswert --- Goodwill --- Impairment --- Investigation --- Offs --- Sellhorn --- SFAS --- under --- USA --- US-GAAP --- Wertberichtigung --- Write
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Addressing the buildup of nonperforming loans (NPLs) in Italy since the global financial crisis will remain a challenge for some time and be important for supporting a sustained, robust economic recovery. The buildup reflects both the prolonged recession as well as structural factors that have held back NPL write-offs by banks. The paper discusses the impediments to NPL resolution in Italy and a strategy for fostering a market for restructuring distressed assets that could support corporate and financial restructuring.
Bank loans --- Banks and banking --- Write-offs --- Debt relief --- Collecting of accounts --- Bank credit --- Loans --- Accounts, Collecting of --- Bad debt losses --- Bad debts --- Bill collecting --- Bill collection --- Bills, Collecting of --- Collection letters --- Collection of accounts --- Collection of debt --- Debt collection --- Debt recovery --- Loan losses --- Recovery of debt --- Credit --- Uncollectible accounts --- Debt renegotiation --- Debt rescheduling --- Debt restructuring --- Relief, Debt --- Renegotiation, Debt --- Rescheduling, Debt --- Restructuring, Debt --- Debtor and creditor --- Charge-offs --- Write-downs --- Writedowns --- Writeoffs --- Accounting --- Management --- Law and legislation --- Banks and Banking --- Finance: General --- Financial Risk Management --- Industries: Financial Services --- Corporation and Securities Law --- Bankruptcy --- Liquidation --- Corporate Finance and Governance: Government Policy and Regulation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- General Financial Markets: Government Policy and Regulation --- Debt --- Debt Management --- Sovereign Debt --- Finance --- Banking --- Nonperforming loans --- Distressed assets --- Financial institutions --- Financial sector policy and analysis --- Asset and liability management --- Collateral --- Debts, External --- Italy
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