Tangible Long-Lived Asset Impairments and Future Operating Cash Flows under U.S. GAAP and IFRS

Gordon, Elizabeth A.; Hsu, Hsiao-Tang

doi:10.2308/accr-51815

Cited by 22 publications

(16 citation statements)

References 35 publications

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“…Keeping the differences in mind, IFRS impairments are expected to have incremental predictive value beyond those under U.S. GAAP. Gordon and Hsu (2018) find that impairments reported under IFRS are negatively associated with changes in future operating cash flows, whereas those under U.S. GAAP, on average, are not. Additional tests suggest that impairment recognition under U.S. GAAP is delayed.…”

Section: Overlap Of Judgement Areas and Significant Measurement Diffementioning

confidence: 73%

Advances and opportunities in international accounting research

Gordon

2019

Rev. contab. finanç.

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Section: Overlap Of Judgement Areas and Significant Measurement Diffementioning

confidence: 73%

Advances and opportunities in international accounting research

Gordon

2019

Rev. contab. finanç.

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“…Kedua organisasi ini berbeda dalam membuat kebijakan terkait penurunan nilai aset tetap. Di Amerika, FASB tidak memperkenankan perusahaan untuk melakukan pemulihan (restoration) atas nilai aset tetap yang telah diturunkan pada periode sebelumnya, tetapi IASB mengizinkan untuk melakukan pemulihan (reversal) atas nilai aset tetap yang telah diturunkan pada periode sebelumnya (Gordon & Hsu, 2018;Hong et al, 2018). Dari regulasi kedua organisasi yang berbeda tersebut, apakah karakteristik kualitatif dari representasi sesungguhnya (faithful representation) lebih optimal menggunakan regulasi dari FASB atau IASB merupakan pertanyaan dalam studi ini yang perlu diinvestigasi lebih lanjut.…”

Section: Pendahuluanunclassified

“…Revaluasi awal menghasilkan penurunan nilai (downward revaluation), maka kerugian ini dilaporkan di laba bersih. Jika revaluasi berikutnya menghasilkan kenaikan, maka kenaikan ini dilaporkan di laba bersih sebatas penurunan nilai yang dilaporkan pada periode sebelumnya (Gordon & Hsu, 2018;KPMG, 2020). Akan tetapi, jika revaluasi awal menghasilkan kenaikan nilai (upward revaluation), maka kenaikan nilai ini diakui di laba komprehensif lain dengan judul surplus revaluasi dan jika terdapat penurunan nilai pada saat revaluasi berikutnya, maka penurunan nilai ini dilaporkan di laba komprehensif (IASB, 2009).…”

Section: Teori Agensiunclassified

“…Akan tetapi, IASB mengizinkan pemulihan (reversal) atas nilai aset hingga sejumlah nilai tercatat jika nilai aset tidak diturunkan nilainya dan nilai pembalikan ini dilaporkan di laba bersih (Gordon & Hsu, 2018;Hong et al, 2018;IAS 16, 2009). Pemulihan atas penurunan nilai terjadi ketika nilai tercatat atau nilai buku dari aset tetap melebihi nilai yang dapat dipulihkan (recoverable amount).…”

Section: Teori Agensiunclassified

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Accounting Standards for Fixed Assets of U.S. Gaap and Ifrs: Covid-19 Pandemic and Earnings Management Perspectives

Vernando

2021

BAKI

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FASB and IASB have differences in setting the accounting standard for fixed asset. The FASB does not allow firms to restore the asset value that has been written down, while the IASB allow companies to recover the asset values that has been written down. These differences have distinct implication to depict the COVID-19 pandemic phenomenon and prevent earnings management that will affect the qualitative characteristics of the faithful representation. Therefore, this study aims to analyze the fixed asset accounting standards of U.S. GAAP or IFRS which is more optimal to improve the faithful representation in the case of the COVID-19 pandemic and earnings management. Based on an analysis of the theory and literature review, this study conclude that the fixed assets accounting standard of IFRS is more optimal to represent the COVID-19 pandemic faithfully than that of U.S. GAAP. This is because IFRS allows for recovery of impairment losses. In addition, the fixed asset accounting standard of U.S. GAAP is more optimal than that of IFRS for preventing earnings management so as to improve the quality of faithful representation of the fixed asset value. This is because the fair value measurement for fixed assets involves estimation and subjectivity of the asset appraiser enhancing the possibility of earnings management.

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“…Gordon and Hsu [18] studied the relationship between impairments recorded in non-current assets and future cashflows of companies. They analyzed data from about 5,400 companies in 26 countries that in some cases used IFRS and in other US GAAP standards.…”

Section: Studies Analyzed About the Importance Of Impairmentsmentioning

confidence: 99%

Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors

Teixeira¹,

Lopes²,

Godinho³

2019

IJAFRM

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This study aims to evaluate the material level of impairment losses registered by the Cape Verdean companies, as well as to analyze its fiscal impact. For this purpose, we ran the Cape Verdean' accounting standards about this subject and studied the tax procedures on impairment registration in the country. In the empirical study, we performed an analysis of the annual report and accounts for 2012 and 2011 of fifty-seven large companies in Cape Verde. These were the benchmark years for establishing the country's major contributors and the normative framework on impairment' application. Evidences showed that, in its vast majority, companies registered impairment losses, namely on customer debts and inventories. We also found that, empirically, impairment value was materially relevant and had impact on tax level, giving the meaningful association between payed taxes (negative association) and turnover (positive association), and registered impairment. In a future work, already in progress, we intended to verify the impairment registration' during the period between 2013 and 2016. We will also try to understand if there is a greater social responsibility by Cape Verde' major contributors.

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Tangible Long-Lived Asset Impairments and Future Operating Cash Flows under U.S. GAAP and IFRS

Cited by 22 publications

References 35 publications

Advances and opportunities in international accounting research

Advances and opportunities in international accounting research

Accounting Standards for Fixed Assets of U.S. Gaap and Ifrs: Covid-19 Pandemic and Earnings Management Perspectives

Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors

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