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.

Earnings management är ett fenomen som enligt studier har ökat i omfattning under senare tid tack vare förändringar av redovisningsprinciper. Detta har gett företag möjligheten att med ökad subjektivitet bedöma värdet på sina tillgångar, vilket kan utnyttjas för att manipulera redovisning och justera resultat i önskad riktning. Den här studien syftar primärt till att undersöka om det finns ett samband mellan variablerna earnings management och pressade resultat bland de noterade bolagen på Nasdaq OMX Stockholm, även kallad “Stockholmsbörsen”. Det sekundära syftet är att undersöka om detta eventuella samband är vanligare förekommande bland mindre företag samt om någon bransch är överrepresenterad. En kvantitativ metod har använts där data från bolagens årsredovisningar har hämtats och sedan granskats. Efter det har en analytisk generalisering gjorts av resultaten som visar på att företag i större utsträckning tenderar att bedriva earnings management under perioder där de upplever pressade resultat, i motsats till perioder där de upplever normala resultat. Studien visar också att detta inte är vanligare förekommande på någon speciell börslista eller inom någon specifik bransch, utan att företagen är representerade i likvärdig utsträckning. I studien visade det sig att ett vanligt verktyg för att bedriva earnings management är att göra stora engångsnedskrivningar av goodwill. Detta möjliggjordes år 2005 då IFRS 13 infördes i EU, vilket resulterade i att goodwillposten årligen nedskrivningsprövas istället för att som tidigare avskrivas planmässigt. En kritisk diskussion förs med slutsatsen att resultaten är delvis applicerbara på den studerade populationen och säger något om närliggande fall. Slutligen diskuteras studiens bidrag där konklusionen är att resultaten adderar till samt stärker tidigare forskning. / Earnings management is a phenomenon whose scope of usage has expanded in recent time due to changes in accounting principles, according to studies. These changes have given companies the possibility to use subjective judgment to a higher degree when valuing their assets. This can be utilized to manipulate accounts and tweak results in desired direction. The purpose of this study is primarily to investigate if there is a connection between the variables earnings management and pressured results among the listed companies on Nasdaq OMX Stockholm, also knowned as “Stockholmsbörsen”. The secondary purpose is to investigate if this possible connection is more common among smaller companies and if there is any industry that is overrepresented. A quantitative method has been used where data has been collected from the companies’ websites and later reviewed. An analytic generalization has then been applied on the results that show that companies tend to engage in earnings management in greater magnitude when they are experiencing times with pressured results, in contrary to when they experience times with normal results. The study also shows that it’s not more commonly practiced on any particular stock market list or in some particular industry. The companies are rather equivalently represented along the scope of industries and stock market lists. The study shows that a common tool to engage in earnings management is to make big one time impairments of goodwill. This was made possible 2005 when IFRS 13 was implemented in the EU, which resulted in that the goodwill account where to be impairment tested every year instead of the former principle that used linear depreciation. A critical discussion is held with the conclusion that the results of the study are partly applicable on the studied population and says something about nearby cases. Finally there is a discussion about the contribution of the study with the conclusion that the findings adds something to and strengthens past findings.

This diploma thesis was focused on goodwill under IFRS specifically for treatment of goodwill, which arises only in acquisitions, involving the formation of relationships between parents and subsidiaries. The main objective was to approach goodwill and everything associated with it in terms of IFRS, which are generally more common for users of financial statements than US GAAP are. A substantial part of the work was devoted to business combinations that involve the recognition of goodwill. Valuation of non-controlling interests was described more specifically as well as impairment test of goodwill. Final analysis was dedicated to real presented data of goodwill in financial statements of three selected companies. Emphasis was placed on the development of discount rates in the years 2008 to 2011.

Submitted by Filipe dos Santos (fsantos@pucsp.br) on 2017-01-10T11:33:44Z No. of bitstreams: 1 Evandro Rossi Canivezi.pdf: 3144731 bytes, checksum: 57b161426a9189d67735d8539d80cceb (MD5) / Made available in DSpace on 2017-01-10T11:33:44Z (GMT). No. of bitstreams: 1 Evandro Rossi Canivezi.pdf: 3144731 bytes, checksum: 57b161426a9189d67735d8539d80cceb (MD5) Previous issue date: 2017-12-15 / The present work refers to the application of the "Impairment test" in a CGH - Hydroelectric Generating Center and aims to understand the condition of this asset, demonstrating the benefit that will be generated by this. The specific objectives of this research include adjusting this fixed asset to its real future economic return capacity, ascertaining that this asset is not recorded in the accounting for a value higher than that recoverable and analyzing whether the book value was recovered or if it is recovered Overvalued, subject to the recognition of losses. The research methodologies used in this work were qualitative and quantitative analysis, besides a case study. The study focuses on two research methodologies regarding the procedures, being carried out research and survey of the information pertinent to the universe to be researched. For the application of the "Impairment test", the amounts presented in the balance sheet and other information provided by the management area of the entity were considered. In the topic "analyzes and discussions", it is possible to observe the impacts, the form of elaboration and disclosure by the organizations and the comments related to this methodology / O presente trabalho refere-se à aplicação do “Impairment Test” em uma CGH - Central Geradora Hidrelétrica e visa compreender a condição deste ativo, demonstrando o benefício que será gerado por este. Os objetivos específicos desta pesquisa compreendem adequar este determinado ativo imobilizado a sua real capacidade de retorno econômico futuro, averiguar que este ativo não esteja registrado contabilmente por um valor superior àquele passível de ser recuperado e analisar se o valor contábil foi recuperado ou se o mesmo se encontra superavaliado, sujeitando-se o ativo ao reconhecimento de perdas. As metodologias de pesquisa utilizadas neste trabalho foram análise qualitativa e quantitativa, além de estudo de caso. Enquadram-se no estudo, duas metodologias de pesquisa quanto aos procedimentos, sendo realizadas pesquisa e levantamento das informações pertinentes ao universo a ser pesquisado. Para aplicação do “Impairment Test”, foram considerados os valores apresentados no Balanço Patrimonial e demais informações fornecidas pela área de gestão da entidade. No tópico “análises e discussões”, é possível observar os impactos, a forma de elaboração e disclosure por parte das organizações e comentários relacionados a essa metodologia

<p> </p><p><strong>Bakgrund: </strong>Sedan den 1 januari 2005 ska samtliga noterade bolag i Sverige tillämpa reglerna i IFRS vid upprättande av årsredovisning. Det innebär att goodwill inte längre ska skrivas av med samma belopp varje år över dess nyttjandeperiod, utan anses istället ha obestämbar nyttjandeperiod och ska testas minst årligen för nedskrivningsbehov. I och med denna regelövergång har den svenska redovisningen anpassats till den internationella och syftet är bland annat att öka jämförbarheten mellan bolag i olika länder. I en studie av Gauffin och Thörnsten (2010) kunde de visa att amerikanska noterade bolag skrev ned 30 procent av total goodwill under 2008, medan svenska noterade bolag endast skrev ned 1,5 procent. 2008 var ett år som i mångt och mycket präglades av en finansiell kris och påverkade bolag i både USA och Sverige. Trots det, samt att reglerna för hur goodwill ska hanteras är i stort sett identiska, är det ändå stora skillnader mellan länderna med avseende på nedskrivning.</p><p><strong>Syfte: </strong>Syftet med studien är att förklara de förhållandevis låga nedskrivningar av goodwill som gjorts bland noterade företag på Stockholmsbörsen under år 2008 samt att förklara hur svenska företag resonerar kring goodwill.</p><p><strong>Genomförande: </strong>Studien omfattar en genomgång av årsredovisningar för åren 2007-2009 upprättade av samtliga noterade företag på Stockholmsbörsen, varigenom uppgifter samlats om bolagens goodwill och nedskrivningar etcetera. Till det har intervjuer gjorts med sex olika företag samt med tre experter.</p><p><strong>Resultat: </strong>Studien har lett fram till ett antal möjliga förklaringar till de förhållandevis låga nedskrivningarna i Sverige under år 2008. Den främsta förklaringen tycks dock ligga i att det finns en brist på granskning av noterade företag i Sverige. Goodwill och nedskrivningsprövning verkar inte vara något som bolagen vill lägga någon vidare tid och energi på, för att värderingen ska göras på ett tillförlitligt sätt. Ett sådant synsätt skulle med all rimlighet ändras om de svenska företagen stod under övervakning i en större utsträckning, så som amerikanska bolag gör. På så sätt kan en felaktig hantering av goodwill leda till konsekvenser för företagen, vilket pressar dem att tillämpa gällande regler så som det är tänkt.</p><p> </p> / <p> </p><p><strong>Background:</strong> Since January 1st 2005 all public companies in Sweden must apply the international rules IFRS in their annual reports. That means that goodwill is no longer amortized with the same amount every year over its useful life, but is instead considered to have an indefinite life and should be tested at least annually for impairment. Due to this rule transition, the rules for accounting in Sweden have converged with the international rules and one aim is to increase the comparability between companies in different countries. A study made by Gauffin and Thörnsten (2010) showed that the impairments made by American public companies composed by 30 percent of the total value of goodwill in 2008, while the corresponding percentage in Sweden the same year was only 1,5. 2008 was the year when the financial crisis began, which affected companies in both the US and in Sweden. Despite of that, and that the rules for goodwill accounting are basically the same, there is still a significant difference between the two countries in regard to impairment charges of goodwill.</p><p><strong>Aim:</strong> The aim of this study is to explain the relatively low impairment charges of goodwill among companies listed at Stockholmsbörsen in the year of 2008, and to explain how Swedish companies view on goodwill.</p><p><strong>Completion:</strong> This study includes a review of the annual reports for 2007-2009 from all companies listed on Stockholmsbörsen, where data related to the companies goodwill and impairment tests has been collected. Also, interviews have been done with six different companies and three experts.</p><p><strong>Results: </strong>The study has generated several possible explanations for the relatively low impairment charges in Sweden in 2008. The main explanation seems to be related to the fact that there is a lack of scrutiny for public companies in Sweden. Goodwill and impairment test is something that the companies doesn´t want to put much time and effort into, in order to make a reliable valuation. This behaviour would most reasonably change if the Swedish companies were more scrutinized, like the American companies are. In that way, an inaccurate valuation of goodwill would lead to consequences for the companies, which pressures them to apply the rules as it is supposed to.</p><p> </p>

<p>Since the year 2005 listed companies are supposed to use international accounting standards when they set up their group accountancy. One thing that has changed with the new standards is the accounting of goodwill and long-lived intangible assets. Earlier companies were supposed to write of their goodwill during the years they had expected the extra profit to arise. According to the new regulation, an impairment test shall be done annually, as well as when there is an indication of decreased value. According to IAS 36 point 134, the company shall provide information in their accountancy about the impairment test.</p><p>The aim of this study is to find out if some companies may be willing to reveal less information in their accountancy, and if there are any factors that affect this. We will investigate if there is any relation between how much the three largest owners in each company hold both in equity- and vote share and how much information that is provided in the accountancy. We will also investigate if there is any relation between the expectations of returns from the market and how much information that is provided. The first hypothesis is: If companies are expected to get a high future cash flow, which implies a high market value in relation to book value of equity, then the company will reveal less information conveying much knowledge about the market to their competitors. The second hypothesis claim that if the three largest owners together holds a large equity- vote share, where small asymmetric information exists, then the company should want to disclose less information in their accountancy.</p><p>In this research we analyse the accountancy of each company listed at the OMX exchange by 31 Dec 2005. To see how much information that is disclosed in the accountancy, we have chosen to analyse how and if the companies accomplish their accounting according to IAS 36 point 134. To be able to compare how much information the companies provided about this, we have created a score structure. Furthermore we have used SPSS to make a regression analysis, which should show if there are any relations. Our results however show that there is no relation between how much information that is given and how large the market value compared to book value of equity is. Neither did we find any relation between how large the three largest owners where and how much information that was provided. Our results differ from earlier studies. One cause for that might be that we only picked three variables, while their studies could have included a lot more variables. Our study only focuses on a small part of the accountancy; if we had analyzed the entire accountancy we might have arrived to a different result. The year 2005 was furthermore the first year that the companies were obliged to follow the standard, which also could have had a certain impact on the result.</p>

<p>Bakgrund:</p><p>De internationella diskussionerna kring goodwill är och har alltid varit många. Man har bland annat diskuterat huruvida goodwill överhuvudtaget är en tillgång samt hur denna tillgång skall värderas, redovisas och skrivas av. Goodwill har fått allt större betydelse i företagen på senare år, bland annat genom de många IT-företag som uppkom i slutet av 1990-talet och därefter. Goodwill, som utgör den största delen av immateriella tillgångar i den ”nya ekonomins” företag, har varit ett av de största redovisningsproblemen. Från och med 1 jan 2005 är det obligatoriskt för alla börsbolag att övergå till IFRS 3 och detta innebär att goodwill inte får skrivas av längre utan man måste utföra årliga så kallade impairment test för att se om det finns nedskrivningsbehov.</p><p>Problem:</p><p>Övergången till IFRS kommer att leda till stora omfattande förändringar bland annat vad gäller sättet att redovisa och se på goodwill. I och med att dessa regler har trätt i kraft från och med 1 januari 2005 kan man inte veta exakt hur detta kommer att påverka företagen då allt kommer att ske i framtiden. Man har inte heller kunnat enas om dessa regler verkligen kommer att ge en rättvisande bild.</p><p>Syfte:</p><p>Syften med denna uppsats är att undersöka hur värderingsprocessen för koncernmässig goodwill går till vid impairment test i och med övergången till IFRS 3 samt om det finns några modeller för värdering av dessa goodwillposter. Vi vill även undersöka om dessa regler medför några problem för börsföretagen samt om de ger upphov till en mer rättvisande bild av goodwill.</p><p>Metod:</p><p>Enkätundersökning, intervjuer, amerikanska artiklar samt skriftliga källor. Vi har kontaktat 50 företag per telefon och 31 av dessa svarade på enkätundersökningen. Vi har även genomfört 3 intervjuer med ekonomiansvariga inom uppsatsens ämne samt en expert på goodwillfrågor på PWC.</p><p>Slutsatser:</p><p>Värderingsprocessen vid impairment test tillämpas på samma sätt av alla företag. Den mest använda modellen för värdering av goodwill är den diskonterade kassaflödes modellen (DCF). Det har visat sig att impairment test är mer tidskrävande och komplicerat än man hade förväntat sig. Under förutsättning att alla företag använder samma parametrar och avkastningskrav vid beräkning av goodwill kan de nya reglerna ge en mer rättvisande bild.</p> / <p>Background:</p><p>The international discussions around goodwill is and has always been many. People have been discussing whether goodwill is an asset and how it should be valued, calculated and amortized. Goodwill have had more importance among the companies during the last years and that is because of arise of the IT-companies at the end of 90´s. The transition to IFRS 3 will apply as of January 1, 2005 for all exchange-listed companies. The main change is that acquired goodwill is no longer amortized over a set time period. Rather, it is tested for impairment and adjusted as needed.</p><p>Problem:</p><p>The transition to IFRS is going to lead to big extensive changes, among other things the way we will see goodwill. These rules were applied January 1, 2005 and we don’t know exactly how there rules are going to influence the companies because everything is going to happen in the future. People have not yet agreed if these rules really give a correct picture of the reality.</p><p>Purpose:</p><p>The purpose of this thesis is to look into how the valuation process of goodwill comes about after the transition to IFRS 3 and also if there is any models for goodwill valuation. We also want to look into if the new rules will bring along problems for exchange-listed companies. The purpose is furthermore to se if IFRS 3 will give rise to a more correct picture of goodwill.</p><p>Method:</p><p>Questionnaire survey, interviews, American articles and litterateur sources. We have contacted 50 companies by phone and 31 of these companies answered our questionnaire survey. We have also made three interviews with people who have experience of goodwill valuation and one interview with an expert in our thesis’ subject area.</p><p>Conclusions:</p><p>The valuation process of goodwill is applied in the same way by all companies. The most used model to measure goodwill impairment is the discounted cash flow model (DCF). It turned out that impairment test is more time-consuming and complicated then one had expected. Under the condition that all companies will use same parametric and earnings requirement when valuating goodwill, IFRS 3 will give rise to a more correct picture of goodwill.</p>

No description available.

Bakgrund: De internationella diskussionerna kring goodwill är och har alltid varit många. Man har bland annat diskuterat huruvida goodwill överhuvudtaget är en tillgång samt hur denna tillgång skall värderas, redovisas och skrivas av. Goodwill har fått allt större betydelse i företagen på senare år, bland annat genom de många IT-företag som uppkom i slutet av 1990-talet och därefter. Goodwill, som utgör den största delen av immateriella tillgångar i den ”nya ekonomins” företag, har varit ett av de största redovisningsproblemen. Från och med 1 jan 2005 är det obligatoriskt för alla börsbolag att övergå till IFRS 3 och detta innebär att goodwill inte får skrivas av längre utan man måste utföra årliga så kallade impairment test för att se om det finns nedskrivningsbehov. Problem: Övergången till IFRS kommer att leda till stora omfattande förändringar bland annat vad gäller sättet att redovisa och se på goodwill. I och med att dessa regler har trätt i kraft från och med 1 januari 2005 kan man inte veta exakt hur detta kommer att påverka företagen då allt kommer att ske i framtiden. Man har inte heller kunnat enas om dessa regler verkligen kommer att ge en rättvisande bild. Syfte: Syften med denna uppsats är att undersöka hur värderingsprocessen för koncernmässig goodwill går till vid impairment test i och med övergången till IFRS 3 samt om det finns några modeller för värdering av dessa goodwillposter. Vi vill även undersöka om dessa regler medför några problem för börsföretagen samt om de ger upphov till en mer rättvisande bild av goodwill. Metod: Enkätundersökning, intervjuer, amerikanska artiklar samt skriftliga källor. Vi har kontaktat 50 företag per telefon och 31 av dessa svarade på enkätundersökningen. Vi har även genomfört 3 intervjuer med ekonomiansvariga inom uppsatsens ämne samt en expert på goodwillfrågor på PWC. Slutsatser: Värderingsprocessen vid impairment test tillämpas på samma sätt av alla företag. Den mest använda modellen för värdering av goodwill är den diskonterade kassaflödes modellen (DCF). Det har visat sig att impairment test är mer tidskrävande och komplicerat än man hade förväntat sig. Under förutsättning att alla företag använder samma parametrar och avkastningskrav vid beräkning av goodwill kan de nya reglerna ge en mer rättvisande bild. / Background: The international discussions around goodwill is and has always been many. People have been discussing whether goodwill is an asset and how it should be valued, calculated and amortized. Goodwill have had more importance among the companies during the last years and that is because of arise of the IT-companies at the end of 90´s. The transition to IFRS 3 will apply as of January 1, 2005 for all exchange-listed companies. The main change is that acquired goodwill is no longer amortized over a set time period. Rather, it is tested for impairment and adjusted as needed. Problem: The transition to IFRS is going to lead to big extensive changes, among other things the way we will see goodwill. These rules were applied January 1, 2005 and we don’t know exactly how there rules are going to influence the companies because everything is going to happen in the future. People have not yet agreed if these rules really give a correct picture of the reality. Purpose: The purpose of this thesis is to look into how the valuation process of goodwill comes about after the transition to IFRS 3 and also if there is any models for goodwill valuation. We also want to look into if the new rules will bring along problems for exchange-listed companies. The purpose is furthermore to se if IFRS 3 will give rise to a more correct picture of goodwill. Method: Questionnaire survey, interviews, American articles and litterateur sources. We have contacted 50 companies by phone and 31 of these companies answered our questionnaire survey. We have also made three interviews with people who have experience of goodwill valuation and one interview with an expert in our thesis’ subject area. Conclusions: The valuation process of goodwill is applied in the same way by all companies. The most used model to measure goodwill impairment is the discounted cash flow model (DCF). It turned out that impairment test is more time-consuming and complicated then one had expected. Under the condition that all companies will use same parametric and earnings requirement when valuating goodwill, IFRS 3 will give rise to a more correct picture of goodwill.

No description available.