Goodwill impairment: A comparative country analysis

Document Type


Publication Title

Academy of Accounting and Financial Studies Journal


In response to de jure versus de facto issues about the convergence of accounting standards, we investigate whether non-U.S. firms (which list their shares on U.S. secondary markets and report under U.S. standards) are more likely to interpret and apply the accounting rules in a different manner than their U.S. counterparts. Specifically, this study evaluates a mediation effect: i.e., that non-U.S. firms will take greater goodwill impairment charges under SFAS 142 (ASC 350) than U.S. firms. The findings indicate that firm-level and country-level characteristics including legal, accounting, and cultural values affect the goodwill impairment decision and impact the comparability of accounting information.

Publication Date