Tesis sobre el tema "Impairment of asset"

Business Administration/Accounting<br>Ph.D.<br>In this dissertation I investigate and compare the impairments of long-lived operating assets under US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS) from different perspective, including the informativeness, determinants, and market valuation of asset impairments. A firm invests in long-lived operating assets with the expectation of generating future benefit. The decision or recognition of asset impairments implies such future benefit is expected to be lower than originally estimated. US GAAP and IFRS both require the recognition of impairment losses but their standards and accounting approaches are different in several ways. These distinctions raise the question whether the reported long-lived asset impairments under US GAAP and IFRS are comparable and motivate this dissertation. I investigate the predictive ability of reported asset write-offs for firms' future performance and find negative associations suggesting the informativeness of impairment losses. But such informativeness depends on the type of assets impaired, the accounting standards adopted, and the institutional characteristics. In general, aggregate impairments are persistently associated with future performance under IFRS but not US GAAP. The impairments of tangible assets have more predictive ability than those of intangibles. For IFRS adopters, enforcement takes a more important role in determining the informativeness of asset impairments than legal origins. I also examine the determinants and attributes of asset impairments under US GAAP and IFRS. I find both of them reflect certain economic factors and reporting incentives. Under US GAAP asset impairments strongly reflect GDP growth, unemployment rate, industry-trend and reporting incentives, including taking a big bath and income smoothing. Under IFRS the impairments reflect most economic factors but less reporting incentives. However, when enforcement is low in IFRS countries, firms tend to manage earnings through asset write-offs. I further address the market valuation of asset write-offs under US GAAP and IFRS. The reporting of asset impairments improves the explanatory power of accounting information for equity prices under IFRS but not US GAAP, especially when enforcement is high. The associations between asset write-offs and equity prices under IFRS in high enforcement countries are significantly different from those under US GAAP, implying investors weigh reported impairments under IFRS. I also use stock returns as an alternative metric of market valuation. Under US GAAP, asset write-offs are negatively associated with past, current, and future stock returns. Under IFRS in high enforcement countries the effects of impairment loss concentrate on past and current stock returns. The results of comparisons suggest asset write-offs under US GAAP and IFRS are not totally comparable from a market perspective. This dissertation contributes to literature on special items, impairment accounting, and reporting under IFRS. It is also related to the comparability of financial reporting under US GAAP and IFRS. While studies have compared overall properties of the two standards, examining the differences in a specific accounting area is also important as U.S. SEC express concern about the convergence of different accounting standards and whether U.S. should incorporate IFRS into its financial reporting systems.<br>Temple University--Theses

Prior to Statement of Financial Accounting Standards No.121 (SFAS No.121): Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of, managers had substantial discretion concerning the amount and timing of reporting writedowns of long-lived assets. Moreover, the frequency and dollar amount of asset writedown announcements that led to a large “surprise” caused the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC) to consider the need for a new standard to guide the recording of impairment of long-lived assets. This study has two primary objectives. First, it investigates the effects of SFAS No.121 on asset impairment reporting, examining whether SFAS No.121 reduces the magnitude and restricts the timing of reporting asset writedowns. Second, the study compares the information content (surprise element) of the asset impairment loss announcement as measured by cumulative abnormal returns (CAR) before and after the issuance of SFAS No.121. The findings provide support for the hypothesis that the FASB's new accounting standard does not affect the magnitude of asset writedown losses. The findings also provide support for the hypothesis that SFAS No. 121 does not affect the management choice of the timing for reporting asset writedowns. In addition, the findings suggest that the market evaluates the asset writedown losses after the issuance of SFAS No. 121 as good news for “big bath” firms, while, for “income smoothing” firms, the market does not respond to the announcements of asset writedown losses either before or after the issuance of SFAS No. 121. The findings also suggest that, for “big bath” firms, the market perceives the announcement of asset impairment losses after the adoption of SFAS No. 121 as more credible relative to that before its issuance. This could be because the practice of reporting asset writedowns after the issuance of SFAS No. 121 is under the FASB's authoritative guidance, which brings consistency and comparability in asset impairment reporting.

The main goal of this thesis is to create a comprehensive view of the measurement of assets in accordance with International Financial Reporting Standards with closer focus on the impaiment tests of assets in accordance with IAS 36 Impairment of Assets. The thesis is divided into several parts the first of which is general and deals with the definition of assets, the conditions for their dislosure in the statement of financial position and methods of their valuation. This part is followed by the third chapter, which at first approaches the valuation models applicable on current and non-current assets, which are excluded from the scope of IAS 36, and then describes the principles of impairment tests of individual assets. The fourth chapter deals with impairment tests of cash-generation units, including goodwill and the allocation of corporate assets. The last part of this thesis contains examples from real financial statements, aim of which is to approach demands of IAS 36 concerning disclosure.

The objective of the International Financial Reporting Standards (IFRS) is to provide useful information to the users of financial statements to assist in making economic decisions. To be useful, information has to be relevant and reliable, but the reliability of information suffers when the guidelines for the reporting of specific issues are not clear and managerial discretion arises. Write-offs are one of those accounting issues that are regularly related to earnings management. By now it is seen as common knowledge that write-offs, especially those on goodwill, do not reflect declines in asset value; rather, they are used as a device to manipulate financial reports. However, there is a striking lack of grounded theoretical research that can confirm this assessment. The aim of this dissertation is to provide valuable analytical and empirical insights on fixed asset write-offs under IFRS. In a first step, the practical implementation of IAS 36 in Europe has to be analyzed, which is best done empirically. Based on the findings from these empirical surveys, the most substantial questions remaining are subject to an in-depth analytical discussion. Since IAS 36 entails different measurement issues that have their origins in finance theory, this dissertation also aims to introduce some basic techniques from theoretical finance to accounting research. Lastly, as the analyses presented in this dissertation do not cover all open questions on fixed asset write-offs, the author hopes to encourage further research on this important topic.

Purpose: The main purpose of this study is to investigate from the users' perspective the influence of adopting IAS 36 'impairment of assets' on accounting information in Jordan and to ascertain the extent to which impairment application can affect users’ decisions. In other words, this study aims to elicit perceptions regarding the motivations and techniques of using impairment loss to discover its effect and role in improving the quality (qualitative characteristics) of accounting information and its impact on the financial statements of users, to assist them in the decision-making process; it also aims to discover whether impairment loss is considered a tool for increasing the credibility of accounting information or a tool for manipulation. To explore the relevance (applicability) of international accounting standards to developing countries such as Jordan is a topic of significant interest amongst accounting information users. Methodology/Approach/Research Questions: This thesis uses a multi-method approach; quantitative and qualitative approaches are both used to collect primary data concerning the 'impairment of assets' phenomenon. Questionnaire and interview surveys are used to explore the motivations and techniques of 'impairment of assets' in Jordan by obtaining the perceptions of respondents. Semi-structured interviews are used to elicit a better understanding of the research questions, confirming and elaborating on the questionnaire survey findings and supporting the development of the hypotheses. The triangulation of findings enables a comprehensive appreciation of the research topic and minimises the possibility of bias resulting from the use of a single method. Analysis and Findings: The first findings are the agreement of the six groups of accounting information users regarding the importance of IAS 36 application, also indicate that there is a significant statistical difference among the respondents' opinions particularly between academics and other groups which indicates that academics were more aware of the importance of applying 'impairment of assets' than the other five groups. A plausible explanation for this result is that academics are more aware that impairment loss depends on market value (fair) instead of historic value, which is more convenient but less reliable. The main conclusion reached through questionnaire and interview survey is the positive impact of 'impairment of assets' on the quality of accounting information according to users' perspective in Jordan. which means there is an impact of impairment on the quality of accounting information, and we assert this finding through correlation that impairment loss depend on market value (fair) instead of historic value, which is more convenient but less reliable . The second finding reveals that two groups of respondents (Accountants and Investors) see impairment as a tool for manipulation. These two groups have similar views that impairment application is considered a technique used to manipulate illegally, in order for managers to achieve their own goals, such as increased compensation (salary), to declare a reasonable profit and avoid a loss, to obtain loans, and to raise share prices. These results can be attributed to scientific knowledge they have about advantages of the application of this standard. Furthermore, interview findings indicate that 68% of all respondents amongst all groups agreed that impairment improves the reliability and credibility of financial reports in Jordan. One of the most important results from the respondents’ views is that impairment announcements provide new information to the market and assist the users to change or modify their decisions. However, interviews showed that investors and accountants have a different view of impairment application, considering it as bad news (weak company), all of these findings will be generalized for developing countries, also will be helpful for developed countries. Research limitations/implications: These findings could be fruitful and helpful for external users of accounting reports and also for regulators and legislators in their attempts to constrain the incidence of earnings management and to enhance the quality of accounting information. The interview sample was quite small (only 14) since some interviewees in developing countries do not like to have their opinions tape-recorded or become worried if notes are taken by devices during the interview as it appears like an interrogation to them. Moreover, in the questionnaire survey, only 324 out of 749 were returned, since access to respondents (Elements sample) was very difficult as they do not stay in the same place. In terms of secondary data, a lack of disclosure limited this study regarding the variables. Contribution: Very few studies concerned with 'impairment of assets' have been conducted on data obtained from financial reports in developed countries. Thus, a different perspective could be obtained from developing countries such as Jordan, which is different in numerous respects, and this will enhance IAS application and provide an accurate picture of impairment practices. Moreover, this study contributes to the literature by employing qualitative and quantitative methods that have not received attention in relation to the effect of monitoring mechanisms.

Вивсвітлені теоретико-методологіні підходи щодо визначення зміни корисності основних засобів; оцінки, за якою визначається сума очікуваного відшкодування та визнається сума втрат від зменшення (сума вигод від відновлення) корисності активів

Asset impairment is a relatively new term in the corporate reporting arena. However, the concept of asset impairment relates closely to that of an asset write-down. Asset write-downs historically have been a feature of corporate reporting for many years (Lee, 1975)) due to the principle of conservatism, although largely discretionary in nature in the UK until the introduction of Financial Reporting Standard 11 Impairment of Assets and Goodwill (FRS 11) in 1998. Asset impairment is defined by the Accounting Standards Board (ASB) in FRS 11 as the situation of: A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount (paragraph 2). Recoverable amount in this context is the higher of net realisable value or value in use. Prior to the issue of regulations in the area of asset impairment, there was very little guidance for corporations which may have been faced with large impairment losses. This could result in some discretion in terms of the timing and how to account for any asset impairment charge, for example either an adjustment to reserves or an expense in the income statement. The aim of this thesis is to explore the practice of impairment of assets in UK published financial statements and evaluate the concept and suitability of impairment as a means of recognising and subsequently measuring a decline in the value of a non current asset and the implications of this process. An assessment of the impact of international standards in relation to asset impairment being operational from January 2005 for UK listed corporations is also undertaken. The sample consists of those corporations listed on the UK Financial Times 100 Index (FTSE 100) of leading corporations from the period from 2003 to 2007-8. The thesis evaluates the extent of earnings management associated with asset impairment charges, both before and after the change in the regulatory environment. An assessment of whether an increase or decrease in the earnings characteristics of corporations takes place as a result of a change in the regulatory environment is also evaluated. Additionally the thesis provides a detailed assessment of the extent of disclosure associated with charging an asset impairment loss and whether this is associated with the size of the asset impairment loss. The measurement and valuation methods employed to implement an asset impairment loss are also evaluated. Other key areas of investigation focus on asset impairment losses being associated with a particular category of asset, business sector, indicator of asset impairment and a change of management. Fair value forms a component of asset impairment loss recognition and this thesis contributes to the debate about the ability of a fair value measurement approach to provide a true and fair view of the corporation.

L’applicazione all’avviamento dell’impairment test costituisce uno dei temi maggiormente dibattuti in ambito internazionale, sia in relazione ai molteplici profili di soggettività insiti nei criteri di valutazione previsti dallo IAS 36 sia in relazione al carattere di novità che investe detta procedura. Attraverso un’indagine empirica sui bilanci 2011 di società quotate italiane, si intende verificare la compliance delle metodologie adottate dalle imprese con le disposizioni dettate dallo IAS 36, nonché la corrispondente disclosure fornita al riguardo. Nella ricerca sono analizzati i vari aspetti dell’Impairment test svolto dalle società sull’avviamento al fine di individuare gli elementi maggiormente osservati e gli eventuali fattori determinanti della non-compliance e della incompleta disclosure. Attraverso la costruzione di un indice di disclosure, infine, si verifica il livello di attendibilità con cui si sono applicate le disposizioni dello IAS 36, presupponendo che la mancata effettuazione di svalutazioni conduca le aziende a fornire una disclosure sull’Impairment test non completa né soddisfacente.

La presente investigación tiene como finalidad evaluar el impacto financiero y tributario de los desembolsos por contenido propio y derechos de transmisión en base a la NIC 38 “Activos Intangibles”. Los canales de televisión son la principal fuente de información, según CONCORTV en el 2017 los ciudadanos indican que uno de los medios de comunicación que tiene mayor presencia a nivel local y regional es la televisión, aunque existe una cierta insatisfacción por parte del ciudadano con respecto a la programación, ya que no es cultural ni educativa. Nos interesa investigar sobre los desembolsos por contenido propio y derechos de transmisión desde la perspectiva de los activos intangibles a nivel contable, al ser un caso particular en un sector poco investigado. La metodología utilizada es el diseño no experimental, el alcance es investigación exploratoria, ya que es un plan de investigación contable aplicado en Perú, el tamaño de la muestra son los canales de televisión que tienen una mayor participación de mercado, el cual concentra el 84 % en el sector de telecomunicaciones. La presente tesis se desarrollará en cinco capítulos. En el primer capítulo, se describirá investigaciones locales e internacionales. En el segundo capítulo, se plantean los problemas, las hipótesis a validar y los objetivos propuestos. En el tercer capítulo, se procederá a describir la metodología a utilizar es enfoque mixto. En el cuarto capítulo, se presentan los resultados del análisis cualitativo y cuantitativo y se plasma en un caso práctico con el que se pretende identificar la capitalización los desembolsos por contenido propio y derechos de transmisión, identificar la variable independiente las cuales puedan generar expectativa de cuan material representa dentro de los estados financieros. En el quinto capítulo se analizan conclusiones y recomendaciones.<br>The purpose of this research is to evaluate the financial and tax impact of disbursements for own content and transmission rights based on IAS 38 "Intangible Assets". Television channels are the main source of information, according to CONCORTV in 2017, citizens indicate that one of the media that has a greater presence at the local and regional level is television, although there is a certain dissatisfaction on the part of the citizen with respect to programming, since it is not cultural or educational. We are interested in investigating the own contents and transmission rights from the perspective of the intangible at the accounting level to be a particular case in a sector little investigated. The methodology used is the non-experimental design, the scope is exploratory research, since it is an accounting research plan applied in Peru, and the size of the sample is the television channels that have a greater market share, which concentrates 84 % in the telecommunications sector. This thesis will be developed in five chapters. In the first chapter, local and international investigations will be described. In the second chapter, the problems are posed, the hypotheses to be validated and the proposed objectives. In the third chapter, we will proceed to describe the methodology to be used is a mixed approach. In the fourth chapter, the results of the qualitative and quantitative analysis are presented and it is embodied in a practical case with which it is intended to identify capitalization disbursements by own content and transmission rights, identify the independent variables which can generate expectation of materials represent in the financial statements. In the fifth chapter conclusions and recommendations are analyzed.<br>Tesis

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics<br>The purpose of this project is to understand the practices of companies regarding recognition, measurement and disclosure of impairment of tangible fixed assets. The sample analysed is formed by the non-financial Portuguese listed companies. This research assumes the point of view of financial statements‟ users. It contributes to provide a database of information and an insight of the practices of the Portuguese listed companies about impairment of tangible fixed assets. The findings suggest that these companies do not provide satisfying information about impairments, in the sense that, in many companies, they do not provide information that is understandable and do not meet all the requirements of IAS 36.

碩士<br>輔仁大學<br>會計學系碩士班<br>106<br>As there were few literature focus on the topic of asset impairment loss in the financial statements in the past. The objective of this study is to examine whether the asset impairment loss continuity and gains on reversal of impairment loss affect the overall disclosure quality of impairment loss, disclosure quality of non-goodwill assets impairment loss, disclosure quality of impairment loss generated from cash-generating units (non-goodwill & goodwill assets), disclosure quality of impairment loss generated from goodwill and disclosure quality of impairment loss generated from intangible assets with indefinite useful lives. Using data of 1,978 firm-year observations listed in Taiwan from 2010 to 2015, results indicate that the asset impairment loss continuity has significant effects on dependent variable which is disclosure quality of asset impairment loss. By adopting the different definitions of continuity of asset impairment loss, it is found that a company’s non-initial of recognition continuity of impairment loss assists the disclosure quality of impairment loss. In contrast, initial of recognition continuity of impairment loss can have negative impact. In conclusion, this research gets the opposite empirical results of the relationship of disclosure quality of asset impairment loss and initial, non-initial recognition. In addition, gains on reversal of impairment loss has no significant effects on the dependent variable which is disclosure quality of asset impairment loss.

碩士<br>中原大學<br>會計研究所<br>94<br>This research analyzes of the market reaction for long-lived asset impairment announcements. The sampling period starts from the 3rd quarter of 2004 to the 3rd quarter of 2005. Samples are subdivided in three ways: early adopters vs. non-early adopters of Statement No. 35, electronic industry vs. non-electronic industry, and with vs. without pre-emptive information. As sensitivity analyses, we eliminate outliers and confounding factor, redefine announcement dates, and use price to book value ratio as impairment indication to reexamine market reaction of asset impairments. Finally, we compare initial announcement samples with post-announcement ones to understand how the market reaction affected by impairment amount. Empirical results show: As predicted, we find significantly negative market reactions to asset impairment announcements and we find the stock price performance over the post-announcement period is lower than that over the pre-announcement period. We found the price reaction in electronic industry is earlier than in non-electronic industry. There is significantly negative market reaction at announcement dates, when pre-emptive information about indication of impairment appears. And there is no significantly negative market reaction at announcement date, after the disclosure of pre-emptive informaiton. We test the determinants of market reaction . Results reveal the larger amount of impairments announced, the higher is market reaction. Besides, the price to book value ratio reflects positive association with abnormal return at announcement date. Overall, this paper provides evidence that the stock price overestimate is the main determinant of asset impairments.

碩士<br>逢甲大學<br>會計所<br>94<br>Before FASB No.35 was released, The ROC''s GAAP permit the assets to estimate appreciation again, the value of asset impairment has not stipulated clearly, but cause the financial statemant to be distorted. And after FASB No.35 is released, can improve the transparency of financial accounting, ensure investors'' rights and interests and integrating with International Accounting Standard. However, comparatively speaking, the impact to industrial circle, academia, government department is quite great, even cause investors to be panic to the market, in view of this, The study research asset''s policies that derivatives come from external and internal sign of sixth section of FASB NO.35. One can help enterprises to remedy the mistake and make policy or meet an emergency because of producing by the environmental change early. This relevant decision with assets of research , detracting in relevant financial rate, corporate governance and other non- financial factors and carrying on the research. The result of study shows multiple corporate governance factors are positive. In addition , electron industry is its arrange invest asset impairment rate than non-electron industry. The arrange of assets impairment and detract to mostly invest this amount of money of assets size decision to have nothing to do with the company actually, should relate to the fact that the company makes into a judgement of this decision .

碩士<br>國立雲林科技大學<br>會計系碩士班<br>102<br>ABSTRACT This study examines whether companies manage earnings through the recognition of impairment loss after the adoption of SFAS 35. The empirical tests are conducted using TEJ database for firms listed on the Taiwan Stock Exchange with fiscal year ends between 2008 and 2012. Empirical results indicate that impairment is negatively associated with discretionary accruals. The results imply that listed companies have strong incentives of taking “big bath”. However, the association between the degree of earnings management and impairment is not significant. Key words: impairment, earnings management, big bath.

碩士<br>淡江大學<br>會計學系碩士班<br>96<br>This paper examines whether earnings management motives affect the association between financial asset write-offs (i.e., big bath, incoming smoothing) and discretionary accruals. This study also aims to explore whether the strength of corporate governance structures affect the assoication between financial asset write-offs and discretionary accruals for firms with earnings management motives. Given that firms are required to adopt Statement of Financial Accounting Standards (SFAS) No. 34, “Accounting Treatment of Financial Instruments” in 2006, the sample consistes of all public firms listed on stock exchange market and over-the-counter excluding financial and insurance industries in the year of adoption. Empirical analyses reveal that the relationship between write-offs and discretionary accruals are significantly negative for firms with earnings management motives. Specifically, firms with income smoothing incentive tend to manage earnings downards by taking finance assets write-offs concurrently with discretionary accruals. The results document that the governance measure counters the otherwise negative association between financial asset write-offs and discretionary accruals for firms with smoothing incentive, suggesting that strong governance mechanisms could constrain the management’s discretionary behaviors.

碩士<br>國立雲林科技大學<br>會計系碩士班<br>100<br>This study is about the association between the asset impairment and corporate governance, especially from the perspective of corporate governance. We build the testimonial model via the least squares method. The testimonial result indicated that the asset impairment is truly positive related to the size of board in statistic, but negative related to the independent directors in statistic. Hence, this research concludes that the asset impairment is still related to corporate governance. It implied that only the mechanism of corporate governance is strong enough, can we improve the relevance of the asset value and achieve the goal of SFAS No.35.

碩士<br>中國文化大學<br>會計研究所<br>94<br>In order to connect ROC’s Accounting Standards with International Accounting Standards, there are some adjustments in the original bulletin from the Accounting Research and Development Foundation. But investors may worry about that the managers will try to use the adjustment space to do the earning management. In this research, we choose specimens of companies between having and not having asset impairments to compare to each other, it is supposed that the research extrapolates to use new bulletin having more motivations to cause manager to do earning management. At the same time, the research will observe the managers would depend on the economic situation of companies or the managers in order to get the earning target. In addition, the managers make the earning management are very complex not only get the earning target but also get expect purpose. Therefore, the research will probe into other causes of the motivations of earnings management. The empirical results indicate that the companies of having the asset impairments have more motivations to make the earning management. The company which take a big bath will use the negative discretionary accruals to make the earning management, and the company which earnings smoothing co-exist will use the positive discretionary accruals. The size, fair value and debt-contract support the hypothesis.

碩士<br>國立政治大學<br>會計研究所<br>95<br>To harmonize faster with international accounting standards, the Financial Accounting Standards Board of Taiwan issued Financial Accounting Standards No. 35, “Accounting for Asset Impairment” on July 1, 2004, and allowed early adoption. This paper examines the relations between the disclosure quantity-level of asset impairment and proxy variables (financial analysts’ earnings forecast error, trading volume and standard deviation of stock return) of information asymmetry, for the companies which adopted Financial Accounting Standards No. 35 early. In addition, this paper examines whether earnings management or operating risks of company has impact on the effect of reducing information asymmetry. In order to effectively measure the disclosure quantity-level of asset impairment, this paper follows the methods of Botosan (1997) and Guo et al. (2004) to construct a tailor-made disclosure index, and then uses multiple regression models to test the hypotheses. After controlling the dollar amount of asset impairment, this paper finds significant positive relation between the disclosure quantity-level of asset impairment and earnings forecast error. This finding indicates that disclosure of asset impairment has incremental information content to reduce information asymmetry. However, that effect of reducing information asymmetry is not significant for probable candidate companies of earnings management. Within the same disclosure quantity-level, companies in the electronics industry and companies with a higher R&D expenditure to net operating revenue ratio have more stock trading volume than those in non-electronics and those with a lower R&D expenditure ratio, respectively. This paper cannot verify the expected sign between disclosure quantity-level of asset impairment and standard deviation of stock return. This paper also finds that industry, as a proxy variable, is more suitable to represent risk of company than R&D ratio. As to the asset impairment disclosure index, this paper finds three phenomena. First, companies with at least one financial analyst following do not have higher disclosure scores than those with no financial analyst following. Secondly, asset impairment disclosure scores are low in average. Thirdly, there is no positive relation between the total disclosure level and asset impairment disclosure scores.

碩士<br>國立臺灣大學<br>會計學研究所<br>95<br>The research focuses on the association between corporate governance and asset impairment. The sample period is from year 2004 to year 2005. The analysis methods adopted in the research are Logit Model and OLS Model. Empirical results suggest what mentioned below. First, it is focused that the association between corporate governance and the probability of whether asset impairment is recognized or not. The result is that the management level replaced, the more deviation between final controlling holder’s controlling right and cash flow right, the less ratio of independent director number, and the less director’s effective holding rate, the more probability of asset impairment recognized. Above-mentioned implied that the less corporate governance mechanism, the more probability of asset impairment loss recognized. In addition, it is focused that the association between corporate governance and the probability of whether asset impairment is recognized in advance or not. The result is that the management level replaced, the more foreign investor’s holding rate, the more deviation between final controlling holders’ controlling right and cash flow right, the less ratio of independent director number, and the less directors’ effective holding rate, the more probability of asset impairment recognized in advance. Above-mentioned implied that the less corporate governance mechanism, the more probability of asset impairment loss recognized in advance. Besides, it is focused that the association between corporate governance and the amount of asset impairment recognized. The result is that the management level replaced, the more deviation between final controlling holder’s controlling right and cash flow right, and the less ratio of independent director number, the more asset impairment is recognized. Above-mentioned implied the less corporate governance mechanism, the more asset impairment loss recognized. Finally, focusing on the association between corporate governance and the amount of asset impairment whether is recognized in advance or not. The result is that the asset impairment loss recognized on time in 2005 is affected more by corporate governance variables than which recognized in 2004.

碩士<br>東海大學<br>企業管理學系碩士班<br>94<br>In order to improve the quality and connect with the international accounting principles, Taiwan Financial Accounting Standards Committee issued Statement NO.35, Accounting for the impairment of assets, based on IAS Statement NO.36. It was announced on June 1, 2004 and it is applicable for all the financial statements that generated after Dec. 31, 2005. The implement of Statement No. 35 might have effect on company earning, asset value and stock price. This thesis gives a solid discussion about Taiwan listed firms’ short-sell behavior, companies’ value and the critical factors that influence Asset Impairment recognition. First of all, this thesis discusses determinants of asset impairment recognition. According to the empirical researches, there is a frequent career move of senior managers in companies that recognize asset impairment. The further research indicates that companies recognizing asset impairment losses earlier enjoy higher rate of return and have larger scale. However, they do not remarkably affected by the managerial motivation. In addition, this thesis also discusses determinants of asset impairment amount. The result points out that, while the market is approvable, companies are much more confident to recognize higher amount of asset impairment. Moreover, the managerial motivation of changes in management and the big bath both have substantial impact on the recognized amount of asset impairment. Besides, this thesis also reviews the short-sell behavior while companies release information about asset impairment. The outcome shows that before or on the announcement day, the remaining amount of accumulative abnormal short interest is positive, but the amount has not reached the statistic significant level. This thesis infers that the reason of insignificant outcome is that when some companies are inspected because of improper advanced asset impairment recognition and suspected of insider trading, other companies would become more cautious about this issue. Therefore, companies recognizing asset impairment would not be active to take advantage of credit trading. The last part of this thesis discusses that how asset impairment’s affects company value based on event study and association study. The evidence indicates that, to companies recognizing asset impairment losses, there is a negative relationship between the accumulative abnormal returns and the amount of assets impairment losses deflated by total assets. Before 2004, data from companies applicable to Statement NO.35 showed a negative relationship between the accumulative abnormal returns and the amount of assets impairment losses deflated by total assets, however, which has not reached significant level. This thesis also states that the reason of insignificant outcome is that the advanced asset impairment adoption implies companies’ substantial losses in assets and discloses or passes some useful information to investors. To companies applicable to Statement NO.35 in 2005, the relationship between the accumulative abnormal returns and the amount of assets impairment losses deflated by total assets is negative, which means that investors would give a negative attitude over those companies who could chose to recognize asset impairment in advanced. Additionally, when reviewing it by long window, we could find out that asset impairment does not have significant negative interpretation ability in both market model or return model. Which indicates that asset impairment and stock return do not have long-term correlation.

碩士<br>國立高雄大學<br>金融管理學系碩士班<br>100<br>The main purpose of this study is to examine whether the type of asset impairment announcement influences the announcement contagion effects and competitive effects. The empirical results confirm the conjecture indicating that different type of asset impairment announcement has different industry effects. The fixed asset impairment announcements demonstrate contagion effects instead of competitive effects. It means that when companies announce fixed asset impairments, their peer firms of the same industry will experience a negative cumulative abnormal return (CAR); the intangible asset impairment announcements demonstrate competitive effects, implying that their peer firms experience a positive cumulative abnormal return (CAR); the impairment announcement of long-term equity investment or goodwill does not have any industry effect.

碩士<br>輔仁大學<br>會計學系碩士班<br>103<br>The main purpose of asset impairments is to convey the real value of assets. The recoverable amount of assets that is a determinant of asset impairments is influenced by the growth of downstream industry. However, the growth of downstream industries hasn’t been considered in recent studies yet. This study classified the downstream industries of firms on the basis of Input-Output Tables from Directorate-General of Budget, Accounting and Statistics to explore the effect of the growth of downstream industry on asset impairments. The results showed that as the downstream industries are declining, the motive of asset impairments is more likely to be reporting incentives; while the downstream industries are growing, the motive of asset impairments is more likely to be economic factors. This study also indicated that when the growth of the downstream industry is declining, firms recognized more amount of asset impairments, regardless of the growth or declined of firms; when the growth of firms and of firms’ downstream industries is increasing, firms recognized more amount of asset impairments.

碩士<br>輔仁大學<br>會計學系碩士班<br>106<br>Impairment would have great impact on business operation in a long way, therefore the information of impairment loss in financial report would be important for financial users to evaluate the condition of corporations. If the information asymmetry gets higher between corporations and financial users, the uses would more easily do wrong investing or loaning decisions. Therefore, corporation would take the capital cost, political cost and the results of information released into account, before decided the disclosure level. This paper followed the disclosure part of impairment rules, and marked financial reports in order to discuss the disclosure quality for corporations. Finally, we find the higher degree after IAS 36 implemented, and for other corporate characteristics, we find that larger size of corporations, electronics manufacturing industry, and larger size of accountant firms will have higher discloser quality

博士<br>國立臺灣大學<br>會計學研究所<br>101<br>Firms that experience asset impairment generate a reverse account to determine the extent of impairment. If the accounting standards permit the reversing of a previously recognized impairment loss, this reversal provides an opportunity for earnings management. In this case, the impairment losses serve as a “cookie jar.” However, if the accounting standards prohibit the reversing of an impairment loss, managers can still utilize this cookie jar reversal with the subsequent sale and disposal of the impaired assets. The listed firms in China have abused the provision for the reversal of impairment losses to manage earnings. Thus, the Chinese government announced a new accounting standard—with effect from the reporting periods beginning on or after January 1, 2007—that prohibits the reversal of long-term asset impairments to limit the opportunistic reporting by managers following asset impairment recognition and reversal. This new standard gives an opportunity to examine whether managers would dispose of impaired assets to manipulate earnings based on overestimated asset impairments. Additionally, I also examine whether a corporate governance mechanism can mitigate this opportunistic behavior. Data were selected from China’s listed A shares between 2003 and 2009. The income from sales of assets before and after the change of this accounting standard is analyzed using the regression method. The abnormal accumulated impairment, which excludes the normal write-downs under the economic factors, is calculated in order to differentiate between managers’ opportunistic behaviors. Since the stock exchanges in China label firms in financial trouble as special treatment firms if they have a negative net income for two consecutive years, managers have an incentive to report a profit when their firm has reported losses in the prior year. The results show that firms that previously reported losses with higher abnormal accumulated impairments have a higher income from the sale of assets in the periods when accounting standards prohibit the reversal of impairments than in the periods when accounting standards permit the reversal. Specifically, firms that reversed impairment losses to manage earnings could still utilize the overestimated asset impairment by disposing of the impaired asset. The empirical findings also show that firms that previously reported losses with higher abnormal accumulated impairments and less corporate governance have a higher income from the sale of assets after the prohibition of the reversals. Further analysis finds that a mitigating effect comes from the shareholder structure. These findings could provide insights into policies for regulators and accounting standard setters.

碩士<br>朝陽科技大學<br>會計所<br>97<br>Since asset impairment has been brought into practice in Taiwan from 2004, most past researches had only focused on market reaction of asset impairment, company features, motivation, and adoption timing. However, few of studies discussed issues of asset impairment reversing. As a result, this study integrating asset impairment recognized and its reversing comprehensively then examines the effect of strategic earning management induced from subjective judgment and discretionary space allowed in Statement of Financial Accounting Standards No. 35 (SFAS 35). Firstly, Koh (2003, 2007) examines the association between institutional investors’ characteristics and earnings management. This study expands the concept of Kho (2007) and further divides institutional investors into two types, i.e., long term stakeholding and short term stakeholding, and investigates the roles that different types of holding stake of institutional investors play on companies’ asset impairment and following reversing unrealized gain occurred. Secondly, prior studies reveal the direct relationship between corporate governance system and strategic accounting report. It is worthy to discuss the relationship among variables of corporate governance, asset impairment and reversing earnings occurred afterward when the recognition of asset impairment is part of company’s strategic accounting report. In summary, this study examines the association between institutional investors and corporate governance and discusses the effects of recognition of asset impairment and reversing unrealized gain occurred. The empirical results show that taking big bath and income smoothing are significantly associated with asset impairment, yet there is no significant influences on the reversing unrealized gain. Further, incorporating institutional investors into discussion of firm’s strategic earnings management shows no significant relationship between type of institutional investors and strategic earnings management. However, long term or short term institutional investors is positive relationship with asset impairment recognized. Therefore, this study infers that institutional investors who expect to maximize earnings will support firm’s strategic earnings management. Although it is not significant in subsequent reversing unrealized gain, the sign of the long term institutional investors conforms to the hypothesis conjecture. Finally, in view of corporate governance, this study finds that superior corporate governance indeed restrains earnings management of asset impairment. Under the model of reversing asset impairment, there is partially support with income smoothing. However, in the circumstance of taking a big bath, the same positive reaction presented with income smoothing. These results demonstrate the companies’ actual reaction to asset impairment reversing under the superior corporate governance.

碩士<br>國立臺灣大學<br>會計學研究所<br>94<br>Name ：Ying-Mei Cheng Month / Year： June, 2006 Advisor ：Yan-Ching Tsai Title ：A study of the relationship between asset impairment and earnings management. Financial Accounting Standards Committee in Taiwan pronounced SFAS NO.35 “Accounting for Asset Impairment” in 2004. Since the implementation of SFAS NO.35 substantially involves accounting assumptions and estimates, firms maybe take advantage of SFAS NO.35 as an earnings management device. In addition, it is hard to obtain the ideal discount rate in the real world, so the determination of the discount rate may be another issue to be concerned and a source of earnings management after the adoption of SFAS NO.35. The paper tries to examine the association between the amount of asset impairment reported and firm’s current performance in exploration of the existence of earnings management. The sample consists of TSE & OTC listing firms, which have implemented SFAS NO.35 and recognized impairment in 2003 annual financial reports or 2004 semi-annual financial reports. The paper also examines whether firms intend to manage earnings through the manipulation of the discount rate. The empirical analysis reveals that： (1)The amount of asset impairment reported is significantly associated with the performance thresholds. The result indicates that managers may apply flexibility in the reporting decisions relating to asset impairment so as to smooth earnings or take big bath. (2)The discount rate is insignificantly associated with the performance thresholds. The result reveals that managers may not overestimate the discount rate so as to manage earnings. (3)The association between the discount rate and corporate governance is insignificant. There is no manipulation behavior for the discount rate of value in use, and the possible reasons are：(1) the discount rate is not the only device for the amount determination of the amount for asset impairment, and managers maybe prefer other ways- an estimate of cash flow, for example. (2) maybe there are sample biases. (3) WACC calculated in the paper may be not the standard which firms take for an estimate of the discount rate. In addition, I find that the discount rates taken by part of firms are unreasonable, SUNRACE (2.91%), PIHSIANG (3.30%), AMPI (3.62%), PRODISC (3.58%) and TACHAN(1.78%) et al., for example. The discount rates of these firms are below prime rate of Central Bank, and I think these firms may underestimate the discount rate to reduce the recognition of asset impairment.

碩士<br>國立高雄第一科技大學<br>財務管理所<br>95<br>In order to improve the quality and connect ROC’s Accounting Standards with International Accounting Standards, Taiwan’s Financial Accounting Standards Committee of the Accounting Research and Development Foundation issued Statement No.35, “Accounting for the impairment of assets” in July 2004. This accounting standard was effective for financial year ending after December 31, 2005, with early application encouraged. The Standard requires that an enterprise should evaluate whether there are indications that an asset (properties, intangible assets, idles assets, long-term investments accounted for under the equity method, goodwill, ets.) is impaired or not on the balance sheet date. If such indication exists, further impairment tests are performed. If the fair market value or value in use of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recovery amount. The impairment should be reflected on the statement in time. When there are evidences that the impairment loss of an asset in prior years may no longer exist or has been reduced, the accumulated impairment loss of an asset (other than goodwill) recognized in prior years should be reversed. Because an accounting process of the property depreciation involve many assumptions and judgment, the amount of the depreciation, carried time, and reversed time are easy to be manipulated by management. Moreover, this procedure gives the chance for managers affecting the result of earnings management. This study investigate that after SFAS No.35 carries out, whether company will apply SFAS No.35 in advance or in time according to the purpose of earnings management. The empirical results are: (1) Earnings growth firms toward to apply SFAS No.35. (2) Comparing with the firms applying SFAS No.35 in time, the firms applying SFAS No.35 in advance have more incentive to use the measures of big bath or earning smoothing to manipulate earning. (3) Electronic industry companies with more amount of depreciation have more incentive to apply SFAS No.35 in advance. However, other industry companies with more amount of depreciation have more incentive to apply SFAS No.35 in time.

碩士<br>國立臺灣大學<br>會計學研究所<br>103<br>This paper examines the relationship between timeliness of asset impairment recognition and diversification discounts. Berger and Ofek (1995) document that diversified firms are less efficient than comparable single-segment firms. As noted by Stein (2003), one of most popular explanations for the “diversification discount” is the inefficient internal capital allocation across different divisions within the multi-segment firm. Timely recognition of asset impairments increases accounting conservatism and reduces information asymmetries between managers and investors, hence discouraging managers from making investing and operating decisions that hurt shareholder value. Thus, I expect that timely recognition of asset impairments helps to reduce diversification discounts. I use data of all publicly traded U.S. firms for the period 2003-2012. To identify if these companies recognize asset impairments timely and calculate their diversification discount, I find a significant negative association between timeliness of asset impairment recognition and diversification discount, suggesting that investors are less likely to discount the value of a multi-segment firm when it recognizes asset impairments on a more timely basis. I then examine whether the effect of timely impairment recognition on diversification discounts is more pronounced in multi-segment firms with more severe information asymmetry problem. I find that the larger the number of segments, the greater the effect of timely impairment recognition on the reduction of diversification discounts. However, I do not find that governance strength affects the association between timely impairment recognition and the reduction of diversification discounts.

碩士<br>國立高雄第一科技大學<br>財務管理所<br>97<br>With the publication of SFAS No.35 “The accounting for Assets Impairment”, the standard of Taiwan’s financial accounting has made a further connection with international practices. In addition, the adoption of SFAS No.35 also lead to the fact that corporate financial condition can more reveal its real financial status and increase the transparency of its financial statement as well. Previous literature indicated that recognition of asset impairment may bring about considerable negative impact on the corporate itself as well as negative market response. Therefore, this study mainly examines whether the corporate can effectively reflect the impaired assets under its governance mechanism. By adopting the Logistic Regression Model, the corporate governance characteristics and its voluntary recognized asset impairment are analyzed. The empirical result shows that the management party is very likely to take an earning bath and smooth earning when confronting asset recognition practices. The stockholding percentage of legal entity is significantly and positively correlated to its voluntary recognized asset impairment and this implies more legal entity stockholders helps in higher disclosure of financial statements. Moreover, based on the samples under strong manipulating earnings incentive with more transfer frequency of high-level managers, poor credit- ranking corporations are significantly and positively correlated to voluntary recognized asset impairment. Furthermore, it results in a notable negative correlation between the non-audit fee charging ratio of accountant and reversed asset impairment, which may be due to the fact that there are possible activities of using reversed asset impairment to manipulate earnings.

碩士<br>國立中正大學<br>會計與資訊科技所<br>95<br>This study examines the earnings management incentives of impairment and the moderating role of corporate governance. We investigate the relations between the earnings management incentives of impairment and the effects of agency problem, corporate governance strength, auditors independence and audit quality. The results of our study indicate that (1) impairment amount is a new tool on earnings management, i.e. taking a big bath or income smoothing. (2) ultimate ownership agency conflict problem and auditors independence have no significant effect on earnings management of impairment loss, (3) independent board directors and independent supervisors reduce the incentives of taking a big bath and income smoothing, (4) audit quality, which is proxy by a whether Big 4 audit firm, reduce the incentives of taking a big bath, but could not moderate the incentives of income smoothing. These results suggest that we should strengthen corporate governance structures and appraisal systems to report factual impairment amount.

碩士<br>國立成功大學<br>會計學系碩博士班<br>97<br>For companies, strategic expenditures are always the gear of the business profit-making machine. They have positive effect on the firm evaluation because they can help managers to grab any investment opportunities in present. After the announcement of the Statement of Financial Accounting Standard No. 35 in 2004, many companies had written off their assets in practice, and there is no study examining the relationship between the strategic expenditures and the asset write-off. Therefore, the purpose of this paper is to find out the effect of asset impairment on the market valuation for corporate strategic expenditures, and to see if the contagious effect between different accounting items exists. According to the result shows：(1) Under the situation of bad economics and operating underperformance, companies which suffered impairment and chose to increase their capital expenditures would cause the investors to grow suspicion about over-investment and inefficiency. Therefore, the valuation of every dollar of corporate capital expenditures will discount.(2) The higher growth opportunities, the lower market valuation of corporate R&D and capital expenditures.(3) Early adoption of No. 35 helps to lessen information asymmetry between companies and investors, making investors to increase the confidence of corporate strategic decisions. (4) Business-to-Client oriented enterprises put larger weights on advertising and marketing expenditures, influencing investors to be more affirmative about the necessity of advertising expenditures.

碩士<br>淡江大學<br>會計學系碩士班<br>95<br>This paper investigates the determinants of asset write-offs regulated under the Statement of Financial Accounting Standards (SFAS) No. 35, “Accounting Treatment of Asset Impairment.” In addition, the study examines whether earnings management motives (i.e., “big bath”, income smoothing) affect the relationship between the amount of impairment loss and discretionary accruals. The paper also aims to explore whether stock price reaction to the announcement of asset write-offs is affected by the level of investors’ sophistication. The empirical results document that the level of asset write-offs are subject to earnings management motives. Specifically, for “big bath” firms, managers tend to engage in earnings management by the magnitude of asset impairment losses and discretionary accruals. Finally, we find a more significant positive relationship between stock price and asset write-offs, as the level of investors’ sophistication increases.

碩士<br>輔仁大學<br>會計學系碩士班<br>94<br>Historic-cost-based accounting information is unable to objectively express the operating performance of the business and to exactly reflect the value of the firms. Statements of Financial Accounting Standards (SFAS) No.35 - Accounting for Asset Impairment, provide a way for a firm to adjust the asset book value to approach its real value. This study addresses how this new SFAS affect the value relevance of a firm’s financial statements. This study adopts the Ohlson’s accounting-based valuation model (1995) to study whether earnings and book values of equity are value-relevant. The sample firms are constrained to 2004 listed companies in Taiwan. In addition, this study further investigates the possible influences of the new accounting standards on the value relevance of a firm’s financial statements. The empirical results evidence that both earning and book value of equity are value revelant. Besides, as a firm adopts SFAS No.35, the value revelance of its book value of equity is increased, and the value revelance of its earning is decreased.

碩士<br>國立成功大學<br>會計學系碩博士班<br>98<br>Abstract Using a dataset of China corporations, this study examines whether the audit committee is effective in restraining the extent of recognition of impairment reversals motivated by earnings management, and improve informativeness of asset impairment reversals. The empirical result indicates that the quality of audit committee is negatively associated with the degree that earning management by means of recognizing of asset impairment reversals and thus improves their informativeness. Overall, the Audit Committee indeed contributes to improve the quality of financial reporting. Key words: Asset impairment reversal, the audit committee, Earnings informativness

碩士<br>輔仁大學<br>會計學系碩士班<br>95<br>Statement of Financial Accounting Standards No. 35（SFAS No.35）: Accounting for Asset Impairment requires that when an asset’s book value is lower than its recoverable amount, a company should recognize the difference as an impairment loss. The enterprise influence and management motive, also macroeconomic factors possibly receives asset impairment. The major purpose of this study is to examine the impact of the change of interest rate and market index on asset impairments. First, this study examines the determinants of early adoption of SFAS No. 35. The study use logistic regression models to analysis the early adopter and non-early adopter firms in finance and non-finance factors. Empirical results suggested that the change of sales, a big bath earnings management and smooth the earning are the main determinants of early adoption of the new accounting standard. Secondly, the study used ordinary least squares regression models to analysis the impact of the change of interest rate and market index on asset impairment. As expected, empirical results showed that the asset impairments are positive correlatively with the change of interest rate. Finally, as we expand the research samples which include impairment loss or non-impairment loss of companies, empirical results showed that the asset impairments are negative correlatively with the whole market returns.

碩士<br>國立中央大學<br>企業管理研究所<br>94<br>This paper examines the stock price impact of SFAS No.35 – Accounting for Asset Impairment – on the listed companies of TSEC. The sample contains 677 observations for the 2003 to 2005 period. First, we use the Event Study to examine the stock effects on the three important event dates for the announcements of the financial accounting standards. In order to increase the robustness, we combine all the sample companies to a portfolio then use the OLS and the SUR to estimate the average abnormal returns. We found negative stock effects for both companies and investors. Second, we separate the sample into two groups according to the level of fixed assets and use SUR to estimate the abnormal returns. Then, we use cross and non-cross statistics to test the result. We found the companies that own more fixed assets were influenced more seriously and the results are consistent with those stock effects.

碩士<br>元智大學<br>商學碩士班(會計學程)<br>100<br>In 2006, China issued Accounting Standard for Enterprises No. 8–Impairment of Assets (CAS-8) and stipulated that "once any loss of asset impairment is recognized, it shall not be switched back in the future accounting periods". To first examine the effects of CAS-8 on the provision of asset impairment losses and its reversal, this study uses the data of firms listed in the Shanghai and Shenzhen stock exchanges for the period from 2003 to 2010. The second purpose of this study is to explore whether the prohibition of asset impairment reversal weakens the association between long-lived provision of asset impairment losses and earnings management factors. This study finds that listed companies with ST (special treatment) symbol will recognize less long-lived impairment losses, but they tend to recognize and reverse short-term impairment losses. This study also finds that there is a significant difference between the motivation of earnings management through the long-lived provision of impairment before and after the issuance of CAS-8.

碩士<br>國立高雄第一科技大學<br>財務管理所<br>94<br>ABSTRACT The goal of the enterprise carrys assets lied in creating profits for the company, if the assets is unable to create the value for the enterprise, and has the latent loss, this information should immediately appear to the information user for decision-making ; FASB 35 is the product under this idea, the criterion force the enterprise to evaluate the company asset, when the assets have the sign of decreasing, namely must recognize this loss, and exposes in the financial report . According to Financial Accounting Standard Board (FASB) 35, published by Accounting Research and Development Foundation on July 1st, 2004, the statement of “Accounting Standard for Asset Impairment” indicated that the advanced adoption of the standard for asset impairment was approved for the financial report submitted after the settlement date of fiscal year, December 31st, 2005. This paper takes corporations listed in Taiwan Stock Exchanges Corporation as researching sample, adopts Logistic regression analysis to study the fourth quarter financial statements in 2004,and understand the relation between corporations adopt asset impairment standard in advance and the financial ratios. The results implied that companies which had higher ratio of long-term investment and gross margin, and had lower return on equity (ROE),and the difference kinds of corporation would adopt the asset impairment standard in advance.

碩士<br>國立高雄大學<br>金融管理學系碩士班<br>100<br>The purpose of this study is to examine whether the recognitions/reversals of asset impairments affect the earnings quality. This thesis focuses on the firms which recognize first and then reverse or reverse first and then recognize asset impairments during a calendar year. I use the absolute level of discretionary accurals and information content of earnings as proxies for earnings quality. I further split the entire sample into two subgroups by the strength of the corporate governance, and test whether asset impairment recognitions/reversals influence earnings quality. The empirical results indicate that firms with asset impairment recognition first and then reversal during the year experience higher informativeness of earnings and lower discretionary accruals. It means these firms recognize and reverse asset impairments during the year to reflect the true values of assets. Moreover, with regard to corporate governance mechanism, the results indicate that the firms under strong corporate governance frequently recognize/reverse asset impairments to convey the true value of the firms to the public, and experience higher earnings quality.

碩士<br>國立交通大學<br>管理科學系所<br>99<br>The New Chinese Accounting Standards (CAS) was released on February 15, 2006. The new standards were effective for the reporting periods beginning on January 1, 2007. The differences between the old and new standard are many; a significant difference is that CAS 8 prohibits the reversal of impairments of long-lived assets. This study investigates the reactions of firms facing the changes in accounting standards to assess whether listed firms recognize less the impairment of long-lived assets after the announcement of the new standards. This study also examines whether listed firms reversed more impairments of long-lived assets before 2007. Based on the data for firms listed in the Shanghai and Shenzhen stock exchanges between 2005 and 2007, this study finds companies recognizing less long-lived asset impairments between 2006 and 2007. Moreover, listed firms do not recognized less asset impairments to assets where the impairment charges can still be reversed under the new accounting standards, such as account receivables and inventory. The results of the study partially support the notion that companies reversed more impairment of long-lived assets in 2006 compared to 2005, which implies that certain companies managed their earnings and reversed previous write-downs prior to the prohibition of the reversal. The implication of this study is that regulatory agencies and financial report users should note that companies might conduct earnings management with the change in accounting standards.

碩士<br>國立雲林科技大學<br>會計系研究所<br>100<br>This study will base on the perspective of corporate financial characteristics and motivations of earnings management to investigate that the determinants of asset impairment as recognized by the listed corporate in our country after the implementation of bulletin on “Accounting for Asset Impairment” from 2005 to 2007. As discovered by substantive results, assumption H1-1, H1-2, H1-3, and H1-4 are obtained with support statistically, indicating the fact that asset impairment recognized by corporate will be affected factors as growth rate on return on assets, profitability, net sales growth rate, debt ratio, and taking big-bath. In other words, the enterprises of Taiwan will work, along the changes of economic environment, to recognized asset impairment. And it will, on one hand, make use of selection of accounting measures to recognize asset impair, and also base on incentive of surplus management to recognize asset impairment in order to reduce the distrust of investor towards the management authority.

碩士<br>國立雲林科技大學<br>會計系碩士班<br>100<br>This paper explores factors leading to the timely application by listed companies of Taiwan SFAS 35 related to fixed asset impairment and divides them into two drivers as earnings management and financial structures. This paper takes fixed asset impairment as the dependent variable, earnings management and financial structures as independent variables, and the company scale as the control variable. This paper uses regression analyses to understand the correlation between fixed asset impairment and earnings management, and financial structures. The result of this paper shows that fixed asset impairment has a significant correlation with earnings management and financial structures.

Dissertação de Mestrado em Contabilidade e Finanças apresentada à Faculdade de Economia<br>A presente dissertação versa sobre o regime fiscal aplicável às perdas por imparidade em ativos correntes, procurando analisar o normativo contabilístico que disciplina o seu reconhecimento, mensuração e desreconhecimento, como também os critérios que levam à sua consequente aceitação fiscal.Sendo um tema que enferma de subjetividade de cálculo, a aplicação das regras fiscais não se apresenta como uma tarefa simples, pelo que, em diversas ocasiões, gera conflitos entre os contribuintes e as autoridades fiscais. Nesse sentido, tem-se apresentado como uma das matérias tributárias com um elevado potencial de litigância.Debruçando-nos, fundamentalmente, em imparidades de inventários e créditos a receber, o objetivo da presente dissertação é analisar a jurisprudência que advém da dificuldade de aplicação das regras fiscais neste regime. Desse modo, pretendemos identificar os fatores geradores de litígio e qual o sentido maioritário das decisões dos tribunais.Para o efeito, metodologicamente, a investigação centrar-se-á numa análise crítica de decisões proferidas pelos tribunais estaduais fiscais portugueses de nível superior (STA, TCAN e TCAS) e ainda dos tribunais arbitrais que funcionam no CAAD.Conclui-se da análise dos casos jurisprudenciais que as perdas por imparidade em créditos de cobrança duvidosa são a operação que com mais frequência está na base dos litígios entre o contribuinte e a administração fiscal. A aplicação do princípio da especialização dos exercícios apresenta-se como a problemática que está maioritariamente subjacente a estes conflitos. O sentido predominante das decisões dos tribunais, no que respeita aos litígios definidos na amostra, é favorável à AT. Esta tendência é consequência da dificuldade dos contribuintes em cumprir as regras fiscais das imparidades, com especial relevo para o artigo 18.º do Código do IRC.<br>The following Master's thesis deals with the tax regime applicable to impairment losses on current assets, seeking to analyse the accounting rules that regulate their recognition, measurement and derecognition, as well as the criteria that lead to their consequent tax treatment.As an issue that suffers from subjectivity of calculation, the application of tax rules is not a simple task, and therefore, on several occasions, generates conflicts between taxpayers and the tax authorities. In this sense, it has presented itself as one of the tax matters with a high potential for litigation.Dealing fundamentally with impairments of inventories and accounts receivables, the objective of this dissertation is to analyse the jurisprudence that arises from the difficulty of applying the tax rules in this regime. In this way, we intend to identify the factors that generate litigation and what is the court's majority decisions. To this end, methodologically, the research will focus on a critical analysis of decisions rendered by the Portuguese tax courts (STA, CAAD, TCAN and TCAS).The analysis of jurisprudential cases shows that impairment losses in doubtful debts are the operations that most often result in litigation between the taxpayer and the tax authorities. The application of the accrual principle is the problem that most frequently underlies these disputes. The predominant Court decisions, as regards the disputes defined in the sample, are in favour of the tax authorities. This tendency is a consequence of the taxpayers' difficulty in complying with the tax rules of impairments, with special emphasis on Article 18 of the CIT Code.

碩士<br>淡江大學<br>會計學系碩士班<br>94<br>In June 2004, Financial Accounting Standards Board (FASB) issued the Statement of Financial Accounting Standards (SFAS) No.35, "Accounting for Asset Impairment", that firms must follow to report the true values of their long-lived assets. The statement is effective on July 1, 2004 with early adoption encouraged. This study investigates the motives of firms to early-adopt the new standard. The logistic regression results indicate that the industry median of market to book ratio and of stock return are both positively related to the decision to adopt SFAS No. 35 early. In addition, the larger the size, the more likely the firm is to early-adopt the pronouncement. The findings also suggest that when a company experiences below normal earnings, managers are more likely to choose to adopt SFAS No. 35 early, supporting the “big bath hypothesis.” A further analysis is conducted to examine whether the assets governed by SFAS No. 35 (i.e., long-term investment under the equity method, real estate investment, fixed assets, goodwill, intangible assets other than goodwill, lease assets, idle assets, long-term receivables, and deferred expenses) have information content. The results using early-adopting firms indicate that real estate investment is positively associated with cumulative abnormal returns (CAR). Moreover, as asset write-offs increase, long-term investment under the equity method, lease assets, and deferred expenses are negatively related to CAR, but fixed assets are positively associated with CAR. The empirical results using the late-adopting firms indicate that, as the write-offs increase, fixed assets are positively associated with CAR, and intangible assets other than goodwill are negatively related to CAR. These findings suggest that part of the assets governed by SFAS No. 35 provides some extent of value relevance to the investors.

University of Technology Sydney. Faculty of Business.<br>This thesis provides evidence on two research questions regarding the independent influence of CFOs on firms’ financial reporting. Chapter 2 examines the effect of relative CFO power on financial reporting integrity and Chapter 3 investigates changes in financial reporting integrity surrounding routine versus non-routine CFO turnover. The primary proxy for financial reporting integrity is the recognition of non-current asset impairments in response to indicators of impairment which remains a key focus area of regulatory scrutiny and inquiry. Based on a sample of 1,781 Australian firm-years over the period 2007 to 2015, the evidence in Chapter 2 illustrates that firms record less timely non-current asset impairments (in the presence of adverse economic circumstances and worsening financial performance) as the degree of relative CFO power increases. 463 Australian CFO changes between 1 July 2007 and 30 June 2015 are examined in Chapter 3 which finds that new CFOs use asset write-offs as a vehicle to engage in ‘big bath’ accounting in the year of a non-routine appointment. The results in Chapter 3 also indicate that (irrespective of the nature of the CFO change) CFOs bias earnings upward in the period prior to their departure. The results are consistent with respect to a number of sensitivity tests and alternative proxies for financial reporting integrity. While CFOs, therefore, have the capacity to exert independent influence over firms’ reported results the balance of findings suggest that CFOs act in self-interest. In other words, CFOs’ financial reporting decisions are opportunistically motivated by their own compensation and career incentives and the personal costs they face. The evidence in this thesis is, therefore, contrary to the view that CEO pressure is a primary driver of CFOs’ involvement in earnings manipulation.

Il tema delle politiche di earnings management appare di estrema rilevanza e di indiscutibile attualità, in particolar modo alla luce dei recenti scandali finanziari legati all’alterazione intenzionale dei valori esposti nel bilancio di esercizio. L’attenzione riservata al tema in parola da parte sia del mondo accademico, sia del mondo professionale, tanto a livello nazionale quanto a livello internazionale, è indice, contemporaneamente, dell’importanza che tuttora riveste il bilancio di esercizio, strumento di informazione e di comportamento per una gamma sempre più vasta di stakeholder, e della delicatezza delle informazioni in esso contenute. Peraltro, la continua evoluzione che caratterizza la normativa e i principi contabili che disciplinano il processo di redazione del bilancio di esercizio consente al management desideroso di raggiungere predefiniti obiettivi di performance di ricercare, in corrispondenza all’evoluzione richiamata, nuovi ambiti di applicazione delle politiche di earnings management. Un esempio emblematico del suddetto fenomeno è identificabile nella introduzione, in ambito europeo, degli IAS/IFRS, obbligatoriamente applicati da parte di tutte le società quotate in un mercato europeo ai fini della redazione del bilancio consolidato a partire dall’esercizio 2005. Ebbene, la transizione al nuovo sistema di principi-guida per la predisposizione del bilancio ha comportato l’adozione di procedimenti tecnico-contabili e di configurazioni di valore nuovi, ed innovativi, rispetto alla tradizione contabile di molti Paesi europei. Una delle novità che ha destato maggiore attenzione è il test di impairment, disciplinato dallo IAS 36 – Riduzione di valore delle attività; il test in parola è finalizzato a verificare la sussistenza – o, viceversa, il deperimento – del valore contabile delle attività patrimoniali esposte in bilancio. La complessa architettura del test e le modalità previste per la determinazione delle quantità su cui lo stesso si basa implicano la formulazione, da parte del management, di numerose ipotesi, stime e congetture, poste alla base dei paralleli processi valutativi richiesti dallo IAS 36. Il test di impairment, pertanto, si configura come una procedura che lascia ampio spazio all’esercizio di scelte soggettive da parte del management, il quale può approfittare dei margini di discrezionalità tecnica ad esso riconosciuti per attuare delle politiche di earnings management. Ebbene, nella letteratura internazionale di Financial Accounting si incontrano numerosi studi che avanzano, in linea teorica, l’ipotesi dell’implementazione di politiche di earnings management nelle valutazioni volte alla verifica delle perdite di valore delle attività patrimoniali; tuttavia, finora si rinviene un numero piuttosto esiguo di ricerche empiriche sul tema, peraltro svolte con esclusivo riferimento al contesto statunitense. Gli esiti delle ricerche in parola sono inequivocabili nel dimostrare come l’impairment test del goodwill sia stato impiegato dal management di vasti campioni di società nord-americane come strumento per la realizzazione di politiche di big bath earnings management. Alla luce delle considerazioni proposte, un approfondimento del tema delle politiche di earnings management applicate all’impairment test con riferimento ad alcune realtà europee possa contribuire allo sviluppo della letteratura di Financial Accounting. Di conseguenza, il presente lavoro indaga il fenomeno delle rettifiche di valore delle attività patrimoniali da parte delle società capogruppo quotate in Italia e nel Regno Unito, con il seguente duplice scopo: — verificare la dipendenza delle impairment loss rilevate in bilancio da politiche riconducibili all’earnings management, e in particolare al filone denominato big bath earnings management; — accertare ed interpretare eventuali divergenze nel modus operandi delle società italiane rispetto alle società britanniche in sede di redazione del bilancio di esercizio, con particolare riguardo all’implementazione del test di impairment. La struttura del lavoro può essere così sintetizzata: - La prima parte è volta ad approfondire, in chiave perlopiù teorica e con finalità interpretative, le principali “aree tematiche” sulle quali lo studio intende focalizzarsi, ossia, rispettivamente, le politiche di earnings management e l’impairment test. Un primo obiettivo che la ricerca si propone di conseguire consiste nella definizione, sulla base di una review della letteratura esistente, della visione di earnings management assunta a riferimento nel prosieguo del lavoro, passando attraverso un excursus ragionato dei presupposti alla base dell’attuazione delle politiche di earnings management, delle finalità perseguibili mediante l’attuazione delle stesse, degli incentivi che inducono il management a ricorrere ai più svariati artifici contabili e degli strumenti a tale scopo attivabili. Con riguardo, poi, alla seconda area tematica, si procede, innanzitutto, allo studio dei contenuti dell’impairment test, così come disciplinato dal principio contabile IAS 36 – Impairment of Assets. In particolare, dopo aver brevemente ripercorso i caratteri fondamentali del richiamato processo di verifica e l’ambito di applicazione dello stesso, ci si propone di delineare gli ambiti di discrezionalità tecnica a disposizione degli amministratori che si accingono all’esecuzione del test, nonché di identificare i possibili utilizzi in senso opportunistico degli stessi, alla luce di quanto già evidenziato con riferimento alle politiche di earnings management. Inoltre, si riporta una breve review delle ricerche empiriche condotte nel contesto nord-americano sul tema degli earnings management applicati alle rettifiche di valore delle attività patrimoniali, con particolare riferimento all’impairment test del goodwill. La suddetta review della letteratura internazionale consente di pervenire alla “mappatura” delle vie di ricerca già percorse dagli Studiosi di Financial Accounting, dei presupposti su cui si fondano le diverse analisi empiriche, delle ipotesi oggetto di verifica, dei contesti assunti a riferimento, dei metodi di analisi statistica utilizzati, dei risultati conseguiti, nonché degli aspetti considerati meritevoli di ulteriori approfondimenti; - la seconda parte del lavoro è dedicata all’esposizione della ricerca empirica condotta con l’intento di coniugare le due tematiche in precedenza distintamente analizzate. La ricerca empirica in parola è finalizzata all’analisi del comportamento concretamente adottato dal management in sede di conduzione del test di impairment e mira a verificare l’impiego dell’impairment test come strumento di earnings management da parte delle società capogruppo quotate in Italia e nel Regno Unito. La scelta dei due contesti di analisi indicati, Italia e Regno Unito, che saranno dapprima distintamente analizzati, e poi messi a confronto, è tutt’altro che casuale, ma si basa sull’esistenza di significative differenze tra i due Paesi, in termini di dimensioni e vivacità del mercato azionario, di dimensioni delle società ivi quotate, di sistema istituzionale, di cultura contabile, eccetera. In estrema sintesi, la ricerca empirica si propone di conseguire i seguenti obiettivi specifici: — l’approfondimento della conoscenza del fenomeno delle rettifiche di valore del complesso delle attività patrimoniali e di una attività in particolare – l’avviamento –, in termini di numerosità e di intensità delle impairment loss rilevate in sede di prima applicazione della verifica di impairment e successivamente; — la verifica dell’esistenza di segnali di alterazione dei risultati dell’impairment test coerentemente con il perseguimento di obiettivi di perfomance riconducibili alla forma del big bath earnings management – o a configurazioni di earnings management alternative; — l’analisi e l’interpretazione critica dell’evidenza empirica prodotta mediante la conduzione degli appropriati test statistici.<br>The issue of earnings management practices is extremely important and of undeniable relevance, especially in light of the recent financial scandals due to the intentional alteration of the values reported in financial statements. The attention devoted to this topic by both the academic and the professional world, at both national and international level, signals, at the same time, the importance of the financial statements as informational and behavioral tool for a growing number of stakeholders, and the sensitivity it information content. Moreover, the constant evolution that characterizes the legislation and accounting standards guiding the preparation of financial statements allows the managers interested in achieving desired performance goals to find out, in correspondence to such evolution, new fields of application of earnings management practices. A topical example of the accounting evolution is identifiable in the adoption of IAS/IFRSs, that are mandatory for European listed companies for the consolidated financial statement, starting from 2005. Indeed, the transition to the new accounting standards has determined the adoption of new, and innovative, technical-accounting procedures and value configurations, different from those previously applied in many European countries. One of the most relevant innovation is the impairment test prescribed by IAS 36 - Impairment of Assets; such test aims at verifying the existence - or, conversely, the decline – of the book value of the assets exposed in the balance sheet. The complex architecture of the test implies the formulation, by management, of a number of assumptions and estimates on which the parallel evaluation processes required by IAS 36 are based. The impairment test therefore leaves ample scope for exercising subjective choices by management, who may use discretionary margins to implement earnings management practices. Well, although this topic is widely discussed, in theory, by Financial Accounting literature, so far the number of empirical research on the topic is really scarce and focused only on the American context. The results of the studies in question are unambiguous in demonstrating that goodwill impairment test has been used by the management of large samples of North American companies as a tool for implementing big bath earnings management practices. All that being stated, a study on the issue of earnings management policies applied to the impairment test referred to some European countries may contribute to the development of the Financial Accounting literature. Consequently, this thesis explores the issue of impairment of assets practices carried out by parent companies listed on the Italian financial market and on the UK financial market, with the following purposes: - verifying the dependence of the impairment loss recognized in the income statement by earnings management practices, in the form of big bath earnings management; - identifying and interpreting any differences in the modus operandi of the Italian companies compared to UK companies in the preparation of financial statements, particularly with regard to the implementation of the impairment test. The thesis structure can be summarized as follows: - the first part aims at studying, mostly in theoretical and interpretive terms, the main "themes" on which the study will focus, i.e., respectively, earnings management practices and impairment test. A first objective of the research is to define, based on a review of existing literature, the vision of earnings management taken as a reference later in this work, through a reasoned survey of the assumptions underlying the implementation of earnings management practices, the objectives pursued through their implementation, the incentives that lead management to make use of a wide variety of accounting tricks and tools in order to achieve the desired purpose. With respect to the second topic, a study of the content of the impairment test, as regulated by IAS 36 - Impairment of Assets, is carried out. In particular, after briefly traced the fundamental characteristics of the said verification process and the scope thereof, the areas of technical discretion available to the managers are traced, and the possible opportunistic uses in terms of earnings management are identified. In addition, a brief review of empirical studies developed in the context of North American on earnings management practices applied to the impairment of assets process, particularly to goodwill impairment test, is here proposed. The above review of international literature permits to create a "map" of the routes already covered by the research scholars of Financial Accounting, the assumptions underpinning the various empirical studies, the statistical analysis methods used to test the hypotheses, and the results already achieved; - the second part of the thesis is devoted to the empirical research, realized with the intent to combine the two subjects previously analyzed separately. Such empirical research aims at analyzing the behavior adopted by management when developing the impairment test, i.e. at verifying whether the impairment test is used as a tool for earnings management by Italian and UK parent companies. The choice of this two contexts of analysis, Italy and UK, which will first be analyzed separately and then compared, it's not random but is based on the existence of significant differences between the two countries in terms of size and vitality of the stock market, the size of the companies listed therein, the institutional system, culture, accounting, etc.. In brief, empirical research aims at achieving the following objectives: - improving the knowledge of the phenomenon of the impairment of assets procedure, in terms of magnitude and frequency of the impairment losses recorded after the first application of the procedure itself and thereafter; - verifying the existence of signals about impairment tests abnormal results consistent with the form of big bath earnings management - or alternative configurations of earnings management; - analyzing and comparing the empirical evidence collected by the appropriate statistical tests with reference, on the one hand, to Italy and, on the other hand, to UK.

碩士<br>中原大學<br>會計研究所<br>94<br>This paper investigates whether firms that pre-managed earnings doesn't meet the threshold (0 or the prior year's earnings) use asset impairment strategy to influence adoption and amount of asset impairment in order 1) to avoid reporting a loss, and 2) to avoid reporting a decrease in earnings. We use cash flows from operating activities as the proxy of pre-managed earnings. As expected, firms that have small positive earnings or slightly larger reported earnings than the prior year when pre-managed earnings are below the earnings threshold (zero for the first hypothesis and the prior year's earnings for the second hypothesis) have lower adoption possibility and amounts of asset impairment. The results are mixed as to the possibility of recognition impairment losses. The regression results show that whether pre-managed earnings met threshold of avoiding losses or not has no influence to adopt asset impairment possibility and amounts. Thus, there is no evidence that firms with small positive earnings and with pre-managed losses have lower early adoption possibility and amounts of asset impairment than have positive pre-managed earnings. Small positive firms are shown to have less strategic consideration for adopt possibility and amounts of asset impairment. However, it is shown that early adopters are more likely to be small positive earnings firms in terms of percentage of early adopters. The decisions to early adopt accounting standards are discretionary. It seems that threshold effects on the adoption of accounting standards exist in the early adopters. We have stronger evidence that firms with pre-managed earnings below the prior year's earnings are less likely to report asset impairment or report less amount of impairment in order to avoid reporting a decrease in earnings. Our second hypothesis is supported. We also find that small positive earnings or slightly larger reported earnings samples are more likely to report subsequent impairments. Subsequent impairment amount is higher than the initial recorded amount for slight earnings increase firm.

碩士<br>國立高雄大學<br>金融管理學系碩士班<br>98<br>The main purpose of this study is to examine whether asset impairment announcements have contagion effects, what kind of announce information causes the contagion effects, and how firm characteristics influence the contagion effects. The empirical results show that asset impairment announcements not only negatively affect shareholder wealth of the impairment firms also reduce share prices of non-impaired firms in the same industry. Information about the extent of impairment losses and the number of impaired firms in an industry contained in each announcement can explain the reasons for contagion effects. Further, the results find that disclosure transparency and gross profit rates of non-impaired firms will weaken the contagion effects. However, levels of fix assets of non-impaired firms will strengthen the contagion effects.

碩士<br>中原大學<br>會計研究所<br>94<br>Accounting upholds historical cost principle and claims that the book value of assets is not suitable for valuation. The issuance of new accounting standard No.35 adds some fair value concepts to long-term assets and can help users of financial reports on assessing enterprise's value. The weath effects of the accounting standard No.35 on shareholders are examined. Firstly, we use probit model to identify determinants of asset impairment recognition. For subsample of recognizing firms, determinants of early adoption is examined. Secondly, we apply event study to analyze market reaction of firms with impairment indication during standard setting process. Finally, based on the difference between recorded and estimated impairment loss, we test how the market incorporates the impairment loss into prices.. The empirical evidence shows: (1). In additon to previous documented determinants, firms not in non-electronic industry and non audited by Big Four are more likely to recode impariment loss, while performance factor contributes to early adoption. (2.) Security returns of firms with indication were significant lower than firms without indication during standard setting process. And security returns of firms with indication were significant lower than firms without indication at accounting standards No. 35 issued date,. (3.) While firms recorded amount of asset impairments meet market expectation, there is no market reaction at declared date of financial report. While firms recorded asset impairments amount in excess of market expectation, there is negative response at declared date of financial report. Finally, while firms recorded asset impairments lower than the amount predicted by market, negative market reaction on declared date of financial report is observed.

碩士<br>台南應用科技大學<br>國際企業經營系碩士班<br>101<br>In order to enhance the economic value of long-term assets in corporate and information transparency in financial statements, the Taiwan Accounting Research and Development Foundation issued Statements of Financial Accounting Standards No. 35 (SFAS No. 35) "Accounting for Impairment of Assets". However, this bulletin involves many assumptions and judgments, which give management’s discretionary space. To recognize asset impairment may be questioned as a new tool for management to manipulate earnings. Therefore, this study investigated the effects of news-reported stimulation factors, economic determinant factors, corporate governance mechanism and credit rating on asset impairment. The results showed：Big Bath and income smoothing in earnings management, and the change of upper management in the news-reported stimulation factors showed significant effects on the behavior of asset impairment; regarding to economic determinant factors, indicated that corporate with poor accounting and earning performance will recognize more asset impairments. Moreover, the results in this study indicated that corporate governance mechanism indeed plays a very important role in recognizing assets: under good corporate governance mechanism, the management certainly recognized the amounts of asset impairment which is based on the economic conditions; furthermore to enhance the earnings information by recognizing asset impairment. The index of cooperate governance built in this study can reflect the condition of asset impairment more essentially. The management can restrict the behavior of recognizing asset impairment speculatively by strengthening the mechanism of cooperate governance to reflect substantial economic conditions from the value of asset impairment. In addition, the study showed also the worse credit rating of enterprise which the more recognizing asset impairments.