Examining the practice of contemporary goodwill accounting in Malaysia

The recent introduction of FRS 136 in Malaysia presents an opportunity to examine the practice of goodwill accounting by first-time reporting entities and to yield insights into the implications of and challenges associated in Malaysia with transition to a new reporting regime. By examining actual disclosures with mandated requirements of the standard we find evidence of a wide range of diversity in practice by large listed Malaysian with many firms failing to meet even basic disclosure requirements. These finding suggest that continued improvement is required by Malaysian companies and their auditors before Malaysian practice meets international standards.