The Relationship Between Reversing Assets Impairment and Earnings Management
| Autor: | Mei-Yu Su, 蘇美玉 |
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| Rok vydání: | 2007 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 95 It has been three years since Taiwan Financial Accounting Standards Committee of the Accounting Research and Development Foundation issued SFAS No.35 “Accounting for the Impairment of Assets” on July 1, 2004. The major difference between Taiwan SFAS No. 35 and SFAS No.121 of FASB lies in reversal of an asset impairment loss. According to SFAS No.35, an entity shall assess at each reporting date whether there is any indication that an impairment loss recognized in prior periods for an asset other than goodwill may no longer exist or may have decreased. If any such indication exists, the entity should reverse an impairment loss. Due to listed firms have such discretion of revaluating asset value that may provide another opportunity of earnings management for listed firms. Prior assets impairment related studies discuss the determinants and market reaction of assets impairment, but few studies focus on the reversal of assets impairment. This study is aimed at investigating the relationship of reversal of assets impairment loss and earnings management. The sample consists of listed firms that reverse assets impairment during the 2004 to 2006. This study predicts that listed firm use the reversal of assets impairment to enhance firm’s profitability further. The empirical results show that the amount of assets impairment loss reversal is significantly positive-associated with the earnings change. The hypothesis of this study gains support. This study conducts several robust tests which include adding audit quality dummy variable, adding electronic dummy variable, and adding last year assets impairment loss dummy variable. The empirical results of these robust tests provide another support to the hypothesis of this study again. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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