Adoption of International Financial Reporting Standards: Impact on the value relevance of intangible assets

Keryn Chalmers*, Greg Clinch, Jayne M. Godfrey

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

51 Citations (Scopus)

Abstract

We examine whether the value relevance of reported intangibles differs between financial reporting regimes pre- and post-adoption of Australian Equivalents to International Financial Reporting Standards (AIFRS) and Australian Accounting Standards (AGAAP) respectively. Using AIFRS and AGAAP measures of goodwill and identifiable intangible assets for the same financial year and testing their association with share prices, we find evidence that AIFRS generally convey incremental useful information for investors about goodwill. For aggregated identifiable intangible assets there is no evidence that AIFRS conveys information beyond that in AGAAP. In contrast, we find evidence that AGAAP provides incremental information for investors in relation to identifiable intangibles, but not goodwill.

Original languageEnglish
Pages (from-to)237-247
Number of pages11
JournalAustralian Accounting Review
Volume18
Issue number3
DOIs
Publication statusPublished - 1 Sep 2008
Externally publishedYes

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