The objective of IAS 36 is to guide a company on how to apply procedures to ensure that its assets are carried at no more than their recoverable amount. The standard IAS 36 is however obscure and full of gaps to be filled with assumptions made by the CFO. Considering the obscurity of IAS 36, the audit of goodwill impairment tests and possible write downs can have different outcomes depending on the relationship between the auditor and CFO. This paper contributes to the literature by investigating how the auditor-CFO relationship influences the audit of goodwill impairment tests and possible write downs. The primary data consist of eight semi-structured interviews with four auditor-CFO pairs, in four Swedish listed companies. The auditor- CFO relationship and related negotiations are found to highly influence the audit of goodwill impairment tests and possible write downs. The findings indicate that the respondents view the auditor-CFO relationship as being proactive. Depending on what role the auditor is ascribed in the relationship by the CFO, the goodwill impairment tests and possible write downs have a different outcome, where optimistic values of the impairment tests are either upheld by implementation of relevant strategies or write downs are conducted.

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Title - To what extent do firms comply with IAS 36?: A study based on firms listed on Nasdaq OMX Stockholm.Level - Master thesis in business administration.Authors - Stina Skyttner and Nora Wennertorp.Supervisors - Arne Fagerström and Saeid Homayoun.Date - 2 June 2017.Purpose - The overall aim of this paper is to build upon earlier research by examining to what extent firms listed on Nasdaq OMX Stockholm comply with disclosure requirements of IAS 36 paragraph 134. The second aim is to examine what variables affect the compliance level of these firms.Methodology - A sample of 90 firm’s annual reports and disclosure notes are surveyed from 2006 to 2016, and aggregated compliance scores are determined and analysed using quantitative statistical methods. The dependent variable is compliance with disclosure requirements of IAS 36 paragraph 134. The independent variables are size, industry, audit firm, leverage ratio, profitability ratio, learning, and the 2008 financial crisis.Findings - The results show that firm’s compliance levels with IAS 36 paragraph 134 have increased from 2006 to 2016, but they are still low compared to what the standard requires. There is not a significant increase in compliance levels during the crisis, therefore the 2008 financial crisis cannot be seen as a determinant factor of compliance with the disclosure requirements. The results show that larger firms and firms with higher leverage- and profitability ratios comply to a greater extent with the standard. Further, the type of industry in which the firm operates in affected the compliance level.Keywords - Impairment testing of Goodwill, IAS 36 paragraph 134, Compliance, Financial Reporting.

Since year 2005 all Nordic companies on a regulated stock market needs to present their accounts according to the IFRS-standards by IASB. This has affected the management of goodwill that now needs to be exposed for an impairment test every year.  This paper handles the impairment of goodwill in Nordic companies to test their ability to follow IAS 36 in the IFRS-standards and neutrality in The Conceptual Framework for Financial Reporting. Goodwill was earlier exposed to linear depreciation according to the national rules, while nowadays it needs to be impaired every time it’s warranted according to the calculated future cash flow. This creates an opportunity for companies to affect the accounts, an opportunity that can be explained by the Agent theory and Big Bath. How companies handle this change in accounting is tested to see if there is any relationship between goodwill impairments and future cash flow. Earlier studies have been made on the American market by Jarva (2009) and his model to calculate future cash flow is used in this paper.

Problembakgrund: Tidigare studier har visat på att klimatrisker kan innebära att tillgångar behöver skrivas ned. Tillsynsorganet ESMA har för 2022 års finansiella rapporter uppmanat de nationella tillsynsorganen att prioritera tillsyn av klimatrelaterade risker. Nämnden har konstaterat att bolag beskriver klimatrisker i hållbarhetsrapporter men att det inte återspeglas i de finansiella rapporterna.  Syfte: Studiens syfte är att undersöka i vilken utsträckning och vad som påverkar om bolag tar hänsyn till klimatrelaterade risker vid nedskrivningsprövning av tillgångar Metod: Studien har utgått från en kvantitativ innehållsanalys med deduktiv ansats där den avser att testa hypoteser formulerade utifrån en litteraturgenomgång. Datan består av sekundärdata från svenska börsnoterade bolags årsredovisningar för räkenskapsåret 2022.  Resultat: Studiens resultat visar ett signifikant positivt samband mellan bolagsstorlek och om hänsyn tas till klimatrelaterade risker vid nedskrivningsprövningar av tillgångar. Resultatet visar också på ett signifikant positivt samband mellan bolag som ger ut specifika upplysningar med ett prediktivt värde vid nedskrivningsprövning och hänsyn till klimatrelaterade risker.  Kunskapsbidrag: Studien bidrar till ökad förståelse för hur svenska börsnoterade bolag tar hänsyn till klimatrisker vid nedskrivningsprövning av tillgångar. Studiens resultat kan vara av intresse för standardsättare och tillsynsorgan. Studien bidrar med en undersökning inom ett område som kan tänkas vara mer aktuellt inom en snar framtid med tanke på den förväntade implementeringen av CSRD och ESMAs uppmaningar. / Background: Previous studies have shown that climate risks may require asset write-downs. The supervisory authority ESMA has urged national supervisory bodies to prioritize supervision of climate-related risks in the 2022 financial reports. The Swedish supervisory authority has noted that companies describe climate risks in sustainability reports but that it is not reflected in the financial reports.  Purpose: The purpose of the study is to examine the extent to which and what influences companies to consider climate-related risks in the impairment testing of assets. Research Method: The study has employed a quantitative content analysis with a deductive approach, aiming to test hypotheses formulated based on a literature review. The data consists of secondary data from the annual reports of Swedish listed companies for the fiscal year 2022.  Results: The study's results indicate a significant positive correlation between company size and the consideration of climate-related risks in asset impairment testing. The results also demonstrate a significant positive correlation between companies providing specific information with predictive value in impairment testing and the consideration of climate-related risks.  Contributions: The study contributes to increased understanding of how Swedish listed companies take climate risks into account when assessing impairment of assets. The study's results may be of interest to standard setters and regulatory bodies. The study contributes with an investigation within a topic that may be more relevant in the near future, given the expected implementation of CSRD and ESMA's urging.

Uppsatsen undersöker utvecklingen av diskonteringsräntor vid nedskrivningsprövningar och efterlevnaden av IAS 36 till företag noterade på nordiska marknader från 2005 till 2023. Uppsatsen är av deskriptiv natur och har en explorativ ansats. Vi analyserar 836 årsredovisningar från 44 företag för att identifiera trender, metoder och följsamhet med IAS 36. Resultaten visar att median- och genomsnittliga diskonteringsräntor varit relativt stabila. Däremot avviker 25,8% av företagen från IAS 36 genom att använda diskonteringsräntor efter skatt. Uppsatsen upptäckte att 15 företag under perioden ändrat sin rapporteringsmetod för diskonteringsräntor mellan före och efter skatt. Baserat på dessa insikter föreslår uppsatsen en mall för optimal rapportering av diskonteringsräntor för att säkerställa bättre följsamhet och jämförbarhet med IAS 36. Dessa insikter belyser även vikten av framtida forskning om faktorer som påverkar justeringar av diskonteringsräntor.

Since 2005, listed companies within the EU have been subject to common regulatory frameworks. With the introduction of IAS 36 paragraph 134, several countries have had to adapt to the new regulations to increase harmonization and comparability in accounting. This study investigates how two member states in the EU (Sweden and the Netherlands) adapted to the new regulations established by the IASB, which is the body that has received approval from the EU as an international standard setter.IAS 36 paragraph 134 was part of IASB's improvement projects regarding the impairments of goodwill and intangible assets with indefinable useful life. The goal of IAS 36 paragraph 134 was to increase the clarity and requirements regarding information on goodwill. The standard means that the companies are forced to provide information on impairment tests by detailing the management of goodwill in the form of disclosure requirements. Previously, companies were able to write off goodwill systematically, but after the change of IAS 36, they instead need to conduct annual impairment tests on Goodwill. The previous research has shown a reasonably weak compliance between the countries, which decreased interest in research during the present. The purpose of the study was to investigate how well Swedish and Dutch listed companies comply with the standard IAS 36 paragraph 134. The study used collected annual reports from 2022 where 40 companies were included in the survey, 20 Swedish and 20 Dutch. After the implementation of a chi-square test, the study concluded that there was no significant difference in the level of compliance between the countries. The results showed that both countries had a high level of compliance of IAS 36 paragraph 134, which can be explained by the countries' high adaptation to the new regulations. This study mentions several decisive factors to the high compliance with the standard.

<p><strong>Problemformulering </strong>Svenska företag som från år 2005 redovisar enligt IAS/IFRS ska i högre utsträckning än tidigare fördela det överpris som betalas vid företagsförvärv på de tillgångar som förvärvas. Tidigare studier har efter införandet mätt var tillgångarna tar vägen vid rörelseförvärv. Det har visat sig svårt för företagen att på ett konsekvent och stringent sätt identifiera immateriella tillgångar sedan specificera dem tydligt i balansräkningen. Begreppsförvirring och otydliga poster i redovisningen har gjort de svårt för användaren av årsredovisningen att få relevant information. Frågan är om det blivit bättre med tiden?</p><p><strong>Syfte </strong>Mäta utvecklingen av specificerade immateriella tillgångar sedan införandet av IAS/IFRS. Följande frågeställningar har ställts: 1. Specificerar företag sina identifierade immateriella tillgångar enligt de ramverk IASB förespråkar så att god redovisningssed kan återspeglas? 2. Har andelen ospecificerade immateriella tillgångar minskat?</p><p><strong>Metod </strong>För att samla in information om utvecklingen har vi studerat årsredovisningen för svenska noterade börsföretag som redovisar enligt IAS/IFRS. Årsredovisningar mellan åren 2003 och 2008 för bolag på stockholmsbörsens Large cap-lista har studerats. En kvantitativ undersökning där operationalisering används för att koda poster från balansräkningen. Egen kodning av vad som anses som vara tillräcklig specificering av tillgången har utförts med begreppet god redovisningssed som grund. Slutligen genomförs beräkning på antal, andel och värde av specificerade immateriella tillgångar varje år.</p><p><strong>Teoretisk referensram </strong>De normer, praxis och lagar som berör immateriella tillgångar och företagsförvärv har författarna sammanställt för att kunna ta del av informationen från årsredovisningar och definiera egna begrepp, Immateriella tillgångar (IAS 38), Företagsförvärv (IFRS 3), Nedskrivning (IAS 36) och redovisningens egenskaper återkopplas i slutsatsen.</p><p><strong>Slutsats </strong>Efter våra kriterier för ospecificerade poster fick vi fram att en positiv utveckling har skett sedan införandet av IAS/IFRS. I takt med identifiering av immateriella tillgångar ökar specificering. Ospecificerade poster har sjunkit med drygt 10 %. Värdet av immateriella har under studiens tidsperiod ökat med 1303 %. Det har inneburit att det totala värdet av ospecificerade tillgångar idag är betydligt större. Det i sin tur påverkar givetvis användaren när den ska ställning till en betydligt större summa ospecificerade tillgångar.</p> / <p><strong>Problem </strong>Listed companies have since the introduction of IAS / IFRS new accounting directives to follow. A major difference is that goodwill, as an asset, may no longer be amortized but will be subjected to an annual impairment test. This will result in the extraction, identification and depreciation of intangible assets from goodwill. This has been proved difficult for companies to identify consistently and rigorously. Confusion and vague items in reporting has made it difficult for users to share information in a proper way.</p><p><strong>Purpose </strong>To measure the progress of specified intangible assets in annual reports, since the introduction of IAS / IFRS. Questions to be answered: 1. Do companies specify their identified intangible assets in agreement with the IASB framework? 2. Has the total value of unspecified assets decreased over time?</p><p><strong>Method </strong>To gather information, we have studied the annual reports of listed companies reporting under IAS / IFRS. For this report, we have chosen annual reports from the years 2003 to 2008 on companies on the Stockholm Stock Exchange's Large Cap list and made a quantitative study, in which operationalization is used to encode the items from the balance sheet.</p><p><strong>Theoretical frame of reference </strong>We have compiled the standards, practices and laws relating to intangible assets and acquisitions. This has been done to acquire the information from annual reports and to define our own concepts. Intangible assets (IAS 38), Business Combinations (IFRS 3), Impairment (IAS 36) and accounting characteristics serve as a foundation to our conclusions.</p><p><strong>Conclusion </strong>Following our criteria for unspecified items, a positive development has occurred since the introduction of IAS / IFRS. As the identification of intangible assets develops with IFRS3 we have seen an increase of specification. Unspecified items have decreased by over 10%. The value of intangible assets during this period has increased by 1303%. It has meant that the total value of unspecified assets today is much bigger. This will affect the user, of course, when he/she will consider a much larger amount unspecified assets.</p>

Problemformulering Svenska företag som från år 2005 redovisar enligt IAS/IFRS ska i högre utsträckning än tidigare fördela det överpris som betalas vid företagsförvärv på de tillgångar som förvärvas. Tidigare studier har efter införandet mätt var tillgångarna tar vägen vid rörelseförvärv. Det har visat sig svårt för företagen att på ett konsekvent och stringent sätt identifiera immateriella tillgångar sedan specificera dem tydligt i balansräkningen. Begreppsförvirring och otydliga poster i redovisningen har gjort de svårt för användaren av årsredovisningen att få relevant information. Frågan är om det blivit bättre med tiden? Syfte Mäta utvecklingen av specificerade immateriella tillgångar sedan införandet av IAS/IFRS. Följande frågeställningar har ställts: 1. Specificerar företag sina identifierade immateriella tillgångar enligt de ramverk IASB förespråkar så att god redovisningssed kan återspeglas? 2. Har andelen ospecificerade immateriella tillgångar minskat? Metod För att samla in information om utvecklingen har vi studerat årsredovisningen för svenska noterade börsföretag som redovisar enligt IAS/IFRS. Årsredovisningar mellan åren 2003 och 2008 för bolag på stockholmsbörsens Large cap-lista har studerats. En kvantitativ undersökning där operationalisering används för att koda poster från balansräkningen. Egen kodning av vad som anses som vara tillräcklig specificering av tillgången har utförts med begreppet god redovisningssed som grund. Slutligen genomförs beräkning på antal, andel och värde av specificerade immateriella tillgångar varje år. Teoretisk referensram De normer, praxis och lagar som berör immateriella tillgångar och företagsförvärv har författarna sammanställt för att kunna ta del av informationen från årsredovisningar och definiera egna begrepp, Immateriella tillgångar (IAS 38), Företagsförvärv (IFRS 3), Nedskrivning (IAS 36) och redovisningens egenskaper återkopplas i slutsatsen. Slutsats Efter våra kriterier för ospecificerade poster fick vi fram att en positiv utveckling har skett sedan införandet av IAS/IFRS. I takt med identifiering av immateriella tillgångar ökar specificering. Ospecificerade poster har sjunkit med drygt 10 %. Värdet av immateriella har under studiens tidsperiod ökat med 1303 %. Det har inneburit att det totala värdet av ospecificerade tillgångar idag är betydligt större. Det i sin tur påverkar givetvis användaren när den ska ställning till en betydligt större summa ospecificerade tillgångar. / Problem Listed companies have since the introduction of IAS / IFRS new accounting directives to follow. A major difference is that goodwill, as an asset, may no longer be amortized but will be subjected to an annual impairment test. This will result in the extraction, identification and depreciation of intangible assets from goodwill. This has been proved difficult for companies to identify consistently and rigorously. Confusion and vague items in reporting has made it difficult for users to share information in a proper way. Purpose To measure the progress of specified intangible assets in annual reports, since the introduction of IAS / IFRS. Questions to be answered: 1. Do companies specify their identified intangible assets in agreement with the IASB framework? 2. Has the total value of unspecified assets decreased over time? Method To gather information, we have studied the annual reports of listed companies reporting under IAS / IFRS. For this report, we have chosen annual reports from the years 2003 to 2008 on companies on the Stockholm Stock Exchange's Large Cap list and made a quantitative study, in which operationalization is used to encode the items from the balance sheet. Theoretical frame of reference We have compiled the standards, practices and laws relating to intangible assets and acquisitions. This has been done to acquire the information from annual reports and to define our own concepts. Intangible assets (IAS 38), Business Combinations (IFRS 3), Impairment (IAS 36) and accounting characteristics serve as a foundation to our conclusions. Conclusion Following our criteria for unspecified items, a positive development has occurred since the introduction of IAS / IFRS. As the identification of intangible assets develops with IFRS3 we have seen an increase of specification. Unspecified items have decreased by over 10%. The value of intangible assets during this period has increased by 1303%. It has meant that the total value of unspecified assets today is much bigger. This will affect the user, of course, when he/she will consider a much larger amount unspecified assets.

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.