The impact of Ias 36 on equity values: Empirical evidence from UAE
Source of Publication
Corporate Ownership and Control
© 2016, Virtus interpress. All rights reserved. Amortization requirement of goodwill asset is one of the most controversial issues in financial reporting. This study provides empirical evidence on whether goodwill amortization has significant impact on equity value. It analyses the information content of goodwill amortization in the determination of firm’s market valuation by Emirates Financial Market Listed companies that clearly reported goodwill amortization over the period 2003 to 2012 inclusive. Evidence suggests that there is a statistically significant association between equity market values and goodwill amortization in the determination of firms’ market valuation, concluding that the UAE market perceives goodwill amortization as having information content when valuing firms and the use of standardized amortization requirement may be appropriate.
Shahwan, Yousef and Roudaki, Jamal, "The impact of Ias 36 on equity values: Empirical evidence from UAE" (2016). Scopus Indexed Articles. 1466.