Title:	Accounting Discretion in Fair ValueEstimates: An Examination of SFAS142 Goodwill Impairments
Authors:	ANNE BEATTY AND JOSEPH WEBER
Keywords:	Accounting Discretion in Fair ValueEstimates
Issue Date:	Sep-2005
Description:	This study examines Statement of Financial Accounting Standards 142 adoption decisions, focusing on the trade-off between recording certain current goodwill impairment charges below the line and uncertain future impairment charges included in income from continuing operations. We examine several potentially important economic incentives that firms face when making this accounting choice. We find evidence suggesting that firms’ equity market concerns affect their preference for above-the-line vs. below-the-line accounting treatment, and firms’ debt contracting, bonus, turnover, and exchange delisting incentives affect their decisions to accelerate or delay expense recognition.
URI:	http://196.189.45.87:8080/handle/123456789/105206
Appears in Collections:	Accounting and Finance

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