TAILIEUCHUNG - Disclosure quality of goodwill impairment testing: A disclosure index

Disclosure quality of goodwill impairment testing: A disclosure index. This study sets out to off erproof of several important questions relating to the quality of information disclosed on goodwill impairment process under the new requirements of RS 36. | Journal of Economics and Development Vol. 14, , April 2012, pp. 5 - 30 ISSN 1859 0020 Disclosure Quality of Goodwill Impairment Testing: A Disclosure Index Khairil Faizal Khairi, Nur Hidayah Laili Islamic Science University of Malaysia, Malaysia Email: khairil2207@ Dung Manh Tran National Economics University, Hanoi, Vietnam Email: tmdungktoan@ Abstract This study sets out to offer proof of several important questions relating to the quality of information disclosed on goodwill impairment process under the new requirements of FRS 36. This study investigates the compliance level and disclosure quality of FRS 36 by top 20 of Singaporean listed firms in SGX at 2007 based on their market capitalization. In order to achieve the objective of this study, the weighted index is chosen because this index is able to differentiate the quality and importance of each mandatory disclosure under FRS 36. The weighted index was developed by constructing a disclosure scoring sheet, obtaining annual reports of 20 sampled Singapore firms for particular year, completing scoring sheet for each firms by assigned weighted for the disclosure items and calculating disclosure weighted index. The weighted index was analyzed to examine the firm’s compliance with the FRS 36 disclosure requirements. The results of this study revealed that 18 out of 20 (90%) firms in Singapore failed to comply with the most basic elements of the FRS 36 pertaining to goodwill impairment testing especially in allocating goodwill into the CGUs and key assumptions used in determining the recoverable amount of CGU assets. Keywords: Impairment testing, FRS 36, Weighted Index, Singapore. Journal of Economics and Development 5 Vol. 14, , April 2012 1. Introduction ferent cultural and institutional contexts (Zeff, 2007; Soderstrom and Sun, 2007; Ball, 2006 and Nobes, 2006). As a result, it formulates excuses for some of firms to adopt the IFRS in overall. Consequently, it increases the

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• Disclosure quality
• Goodwill impairment testing
• A disclosure index
• This study sets out
• Several important questions relating
• Financial reporting quality
• Audit quality
• Quality measures
• Investors’ perceptions
• Measuring the effect of disclosure quality
• Integrated business reporting on the predictive power
• Accounting information and firm value
• The Egyptian Stock Market
• Integrated Business Reports
• BMC Cancer
• Diagnosis awareness
• Diagnosis disclosure
• Meta analysis
• Quality of life
• Systematic review
• Microbial Pectic
• Wine Industry
• Quality Control
• Wastewater
• Maillard Reaction
• Pros and Cons
• Fair value
• Free cash flow
• Financial instrument
• Industry specialist
• AFS financial assets
• Sustainability report
• Corporate social responsibility
• Sustainability report practices
• Significant positive correlation
• Quality sustainability disclosure