 Insights on CFOs’ Perceptions about Impairment Testing Under IAS 36Francesco Mazzi, Giovanni Liberatore and Ioannis Tsalavoutas Accounting in Europe, 2016, vol. 13, issue 3, 353-379 Abstract: We survey CFOs of Italian listed companies and examine their views on the complexities involved in implementing IAS 36 requirements and the perceived usefulness of national guidelines aiming at assisting preparers in this respect. We find that IAS 36 is perceived as an atypical standard among IFRS, it demands subjective interpretation, its requirements can be made adaptable to managerial needs and do not limit creative accounting. Further, respondents do not see a strong link between IAS 36 disclosure requirements and market variables, except for stock returns. Moreover, the impairment testing process became more difficult during the recent financial crisis and guidelines issued by the Italian authorities do not appear to assist in implementing the recoverable amount estimation process or compliance with mandatory disclosure. The respondents explicitly call for a revision in IAS 36 and/or issuance of separate guidance. These findings inter alia respond directly to the IASB’s current quest on financial statements preparers’ concerns about the application of the IAS 36 requirements. Date: 2016 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:acceur:v:13:y:2016:i:3:p:353-379 Ordering information: This journal article can be ordered from DOI: 10.1080/17449480.2016.1244341 Access Statistics for this article Accounting in Europe is currently edited by Lisa Evans More articles in Accounting in Europe from Taylor & Francis Journals |
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