The value relevance and reliability of reported goodwill and identifiable intangible assets

F.N.H. Dahmash, Robert Durand, John Watson

Research output: Contribution to journalArticle

41 Citations (Scopus)

Abstract

We examine the value relevance and reliability of reported goodwill and identifiable intangible assets under Australian GAAP from 1994 to 2003; a period characterised by relatively restrictive accounting treatment for goodwill and relatively flexible accounting treatment for identifiable intangible assets. Our findings, using an adaptation of Feltham and Ohlson (1995), suggest that for the average Australian company the information presented with respect to both goodwill and identifiable intangible assets is value relevant but not reliable. In particular, goodwill tends to be reported conservatively while identifiable intangible assets are reported aggressively.
Original languageEnglish
Pages (from-to)120-137
JournalThe British Accounting Review
Volume41
Issue number2
DOIs
Publication statusPublished - 2009

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