Challenging the compliance myth: evidence from the IFRS impairment testing regime

Tyrone Carlin, Nigel Finch

Research output: Contribution to journalConference paperResearchpeer-review

Abstract

There has been much criticism of the IFRS impairment testing regime, principally because of the increased potential for opportunism in financial statement preparation due to the subjective and unverifiable nature of a range of required assumptions. This paper adds to the extant literature’s catalogue of concerns by documenting systematic non compliance with the disclosure requirements of AASB136. We argue that a key problem resulting from this phenomenon is a decline in financial statement comparability and we raise questions as to the implications of the complexity of the IFRS based impairment testing regime both from the preparer and audit perspective.

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Testing
Financial statements
Impairment
International Financial Reporting Standards
Preparation
Audit
Criticism
Disclosure requirements
Noncompliance
Opportunism

Cite this

@article{294531107fa9418fa5334fb9849208fc,
title = "Challenging the compliance myth: evidence from the IFRS impairment testing regime",
abstract = "There has been much criticism of the IFRS impairment testing regime, principally because of the increased potential for opportunism in financial statement preparation due to the subjective and unverifiable nature of a range of required assumptions. This paper adds to the extant literature’s catalogue of concerns by documenting systematic non compliance with the disclosure requirements of AASB136. We argue that a key problem resulting from this phenomenon is a decline in financial statement comparability and we raise questions as to the implications of the complexity of the IFRS based impairment testing regime both from the preparer and audit perspective.",
author = "Tyrone Carlin and Nigel Finch",
year = "2009",
language = "English",
pages = "1--27",
journal = "2009 AFAANZ Conference proceedings, 5-7 July 2009, Adelaide, Australia. Carlton, Vic. : AFAANZ,2009",
issn = "1328-780X",
publisher = "Accounting and Finance Association of Australia and New Zealand",

}

Challenging the compliance myth : evidence from the IFRS impairment testing regime. / Carlin, Tyrone; Finch, Nigel.

In: 2009 AFAANZ Conference proceedings, 5-7 July 2009, Adelaide, Australia. Carlton, Vic. : AFAANZ,2009, 2009, p. 1-27.

Research output: Contribution to journalConference paperResearchpeer-review

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AU - Carlin, Tyrone

AU - Finch, Nigel

PY - 2009

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N2 - There has been much criticism of the IFRS impairment testing regime, principally because of the increased potential for opportunism in financial statement preparation due to the subjective and unverifiable nature of a range of required assumptions. This paper adds to the extant literature’s catalogue of concerns by documenting systematic non compliance with the disclosure requirements of AASB136. We argue that a key problem resulting from this phenomenon is a decline in financial statement comparability and we raise questions as to the implications of the complexity of the IFRS based impairment testing regime both from the preparer and audit perspective.

AB - There has been much criticism of the IFRS impairment testing regime, principally because of the increased potential for opportunism in financial statement preparation due to the subjective and unverifiable nature of a range of required assumptions. This paper adds to the extant literature’s catalogue of concerns by documenting systematic non compliance with the disclosure requirements of AASB136. We argue that a key problem resulting from this phenomenon is a decline in financial statement comparability and we raise questions as to the implications of the complexity of the IFRS based impairment testing regime both from the preparer and audit perspective.

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JO - 2009 AFAANZ Conference proceedings, 5-7 July 2009, Adelaide, Australia. Carlton, Vic. : AFAANZ,2009

JF - 2009 AFAANZ Conference proceedings, 5-7 July 2009, Adelaide, Australia. Carlton, Vic. : AFAANZ,2009

SN - 1328-780X

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