The accounting treatment of purchased goodwill under IFRS has been severely criticizeddue to the extensive use of fair value accounting. The purpose of this study is to enrich theongoing debate upon this issue by drawing attention to the market valuation implications ofgoodwill in a country outside the Anglo-Saxon accounting paradigm, where the applicationof fair value accounting has been seen as more problematic. The results indicate that, in thecase of purchased goodwill, fair value accounting generates relevant accounting numbersbut only in companies that comply highly with IFRS disclosure requirements.
SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)
SOCIAL SCIENCES -- Economics and Business -- Business Administration (hsv//eng)
Fair value accounting
Goodwill; Value relevance; Fair value accounting; Mandatory disclosures; IFRS; Greece