Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/25494
Appears in Collections:Accounting and Finance Journal Articles
Peer Review Status: Refereed
Title: Mandated disclosures under IAS 36 Impairment of Assets and IAS 38 Intangible Assets: Value relevance and impact on analysts' forecasts (Forthcoming/Available Online)
Authors: André, Paul
Dionysiou, Dionysia
Tsalavoutas, Ioannis
Contact Email: dionysia.dionysiou@stir.ac.uk
Keywords: Mandatory disclosures
value relevance
analysts’ forecasts
intangibles
impairments
IAS 36
IAS 38
Issue Date: 26-Jun-2017
Citation: André P, Dionysiou D & Tsalavoutas I (2017) Mandated disclosures under IAS 36 Impairment of Assets and IAS 38 Intangible Assets: Value relevance and impact on analysts' forecasts (Forthcoming/Available Online), Applied Economics.
Abstract: Drawing on a large sample of European firms, we examine whether variant compliance levels with mandated disclosures under IAS 36 Impairment of Assets and IAS 38 Intangible Assets are value relevant and affect analysts’ forecasts. Our results indicate a mean (median) compliance level of about 84% (86%) but high variation among firms; and disclosure levels regarding IAS 36 being much lower than those regarding IAS 38. In depth analysis reveals that non-compliance relates mostly to proprietary information and information that reveals managers’ judgment and expectations. Furthermore, we find a positive (negative) relationship between average disclosure levels and market values (analysts’ forecast dispersion). Results, however, hold more specifically for disclosures related to IAS 36, and these also improve analysts’ forecast accuracy. Our findings add knowledge regarding the economic consequences of mandatory disclosures, have an appeal to regulators and financial statement preparers, and reflect on the IASB’s concerns to increase the guidance and principles on presentation and disclosure.
DOI Link: http://dx.doi.org/10.1080/00036846.2017.1340570
Rights: This item has been embargoed for a period. During the embargo please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study. This is an Accepted Manuscript of an article published by Taylor & Francis Group in Applied Economics on 26 Jun 2017, available online: http://www.tandfonline.com/10.1080/00036846.2017.1340570.

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