|
Factors Influencing the Voluntary Reinstatement of Goodwill in the UK
Victoria Wang,
National Chung Hsing University
ABSTRACT. UK FRS 10 acknowledges the huge impact it may bring to companies, it therefore allows a high degree of flexibility in treating previously acquired goodwill The transitional arrangements permit companies to leave the ‘old’ goodwill written off against equity, or to reinstate all or part of the previously written-off goodwill. Since the reinstatement decision is at the discretion of management, it will be interesting to find out what are the attributes of firms that chose to reinstate goodwill previously written off to reserves. I expect that the firm-specific characteristics related to the reinstaters will make a more pronounced than those of the early adopters. This is because reinstatement choice will bring back goodwill previously written off to reserves over past years, whereas early adoption may only cause goodwill acquired in the current year to be capitalised.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|