An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Jenny Barksjo
Göteborg University

Mattias Hamberg
Göteborg University

Mari Paananen
University of Hertfordshire

Abstract: We examine the effects of the implementation of the “impairment-only” approach to goodwill accounting in Sweden after three quarters of 2005. We compare the value relevance of the third quarters accounting information before and after the switch to IFRS. We found no evidence of an overall increase in the value relevance of the accounting measures between 2004 and 2005 for the whole sample. However, we found a significant increase in the value relevance of accounting information for companies with substantial intangible assets. But contrary to our expectations, an investigation of the incremental effect of intangible assets on share prices suggests a significant decrease between the periods. It should be noted that the study in its present stage does not cover the whole of year 2005. It should be noted that the paper will be updated with the data for the complete year of 2005 as soon as this data is available.

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