Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan

Accounting for goodwill is one of the most controversial issues in financial reporting. This study provides empirical evidence on whether goodwill amortisation requirement is inappropriate. It analyses the information content of goodwill amortisation in the determination of firm’s market valuation b...

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Main Author: Shahwan, Yousef
Format: Article
Language:English
Published: Accounting Research Institute (ARI) & Faculty of Accountancy 2005
Online Access:https://ir.uitm.edu.my/id/eprint/288/
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author Shahwan, Yousef
author_facet Shahwan, Yousef
author_sort Shahwan, Yousef
building UiTM Institutional Repository
collection Online Access
description Accounting for goodwill is one of the most controversial issues in financial reporting. This study provides empirical evidence on whether goodwill amortisation requirement is inappropriate. It analyses the information content of goodwill amortisation in the determination of firm’s market valuation by Emirates Financial Market Listed companies that clearly reported goodwill amortisation over the period 1990 to 2002 inclusive. Evidence suggests that there is a statistically insignificant association between equity market values and goodwill amortisation in the determination of firms’ market valuation, concluding that the UAE market does not perceive goodwill amortisation as having information content when valuing firms, and the use of standardised amortisation requirement may be inappropriate.
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spelling uitm-2882017-10-25T08:51:28Z https://ir.uitm.edu.my/id/eprint/288/ Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan mar Shahwan, Yousef Accounting for goodwill is one of the most controversial issues in financial reporting. This study provides empirical evidence on whether goodwill amortisation requirement is inappropriate. It analyses the information content of goodwill amortisation in the determination of firm’s market valuation by Emirates Financial Market Listed companies that clearly reported goodwill amortisation over the period 1990 to 2002 inclusive. Evidence suggests that there is a statistically insignificant association between equity market values and goodwill amortisation in the determination of firms’ market valuation, concluding that the UAE market does not perceive goodwill amortisation as having information content when valuing firms, and the use of standardised amortisation requirement may be inappropriate. Accounting Research Institute (ARI) & Faculty of Accountancy 2005-07 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/288/1/AJ_YOUSEF%20SHAHWAN%20MAR%2005.pdf Shahwan, Yousef (2005) Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan. (2005) Malaysian Accounting Review <https://ir.uitm.edu.my/view/publication/Malaysian_Accounting_Review.html>, 4 (1). pp. 1-10. ISSN 1675-4077 https://mar.uitm.edu.my/
spellingShingle Shahwan, Yousef
Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan
title Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan
title_full Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan
title_fullStr Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan
title_full_unstemmed Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan
title_short Should goodwill be amortised? Empirical evidence from UAE / Yousef Shahwan
title_sort should goodwill be amortised? empirical evidence from uae / yousef shahwan
url https://ir.uitm.edu.my/id/eprint/288/
https://ir.uitm.edu.my/id/eprint/288/