Practitioner views of goodwill accounting under US GAAP
| Autor: | M. David Gorton, Kati Pajunen, Jani Saastamoinen, Arsen Djatej |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Transparency (market)
media_common.quotation_subject Principal–agent problem liikearvo Accounting Big 4 laskentatoimi Audit United States of America Conservatism sukupuoli Intangible asset IFRS-standardit Perception Opportunism gender tilintarkastus media_common auditors kirjanpito tilintarkastajat business.industry US GAAP Yhdysvallat goodwill accounting Goodwill Business |
| Zdroj: | Journal of Applied Accounting Research. 21:783-798 |
| ISSN: | 0967-5426 |
| DOI: | 10.1108/jaar-04-2019-0074 |
| Popis: | PurposeAccounting standards for goodwill may intensify the agency conflict. Since auditors evaluate intangible asset valuations, this study examines to what extent being an auditor (including Big 4 auditors) and being female as indicators of professional skepticism and conservatism predict accounting professionals' critical views of goodwill accounting under US GAAP.Design/methodology/approachStatistical analyses of a survey of accounting professionals in the Pacific Northwest region of the United States.FindingsThe respondents' views are dispersed from trust in GAAP to views reflecting management opportunism in goodwill accounting. While being an auditor (including Big 4 auditors) does not predict a critical perception, being a female auditor is correlated with critical views to some extent.Research limitations/implicationsThe survey was carried out in a limited geographical area and personal contacts were used to maximize the response rate, which may limit generalizability.Practical implicationsStandard setters can use the results to learn how practitioners perceive the current accounting standards for goodwill. The results provide users and preparers knowledge about potential pitfalls of goodwill accounting. Preparers could increase transparency to alleviate user concerns regarding managerial opportunism in goodwill accounting.Originality/valueThis paper extends the IFRS-based literature exploring practitioners' perceptions of accounting standards by focusing on goodwill accounting in the US GAAP environment. This study also contributes to the auditing literature by providing further evidence on how gender moderates an auditor's perception of accounting standards. |
| Databáze: | OpenAIRE |
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