[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/beo/ekidpr/y2021i42p15-29.html
   My bibliography  Save this article

What Determines The Application Of Ifrs 3 In Accounting For Goodwill? (Determinante Primene Standarda Msfi 3 Prilikom Računovodstvenog Tretmana Gudvila)

Author

Listed:
  • Milutin Živanović
Abstract
Accounting treatment of goodwill is often described as one of the most complex and controversial topics in the field of financial reporting, so it is of primary interest to examine the factors that affect application of IFRS 3 in Serbia given the low quality of financial reporting in developing countries to which Serbia belongs. Paper results show low quality of financial reporting on domestic business combinations which is an indicator to professional and regulatory bodies that there is significant room for improvement in this field. Research findings also show that: type of audit firm, the country of origin in which ultimate owner of an acquirer operates, legal form of an acquirer and finally transaction size play an important role in determining whether an acquirer will apply IFRS 3 when it comes to accounting for goodwill. Besides that paper reveals that materiality of goodwill is of significantly lower magnitude in domestic transactions than in transactions realized in developed European economies, but that the average percentage of consideration transferred allocated to goodwill is almost identical which implies that on average domestic and European M&As are equally motivated by the acquisition of goodwill as of the acquisition of identifiable net assets.

Suggested Citation

  • Milutin Živanović, 2021. "What Determines The Application Of Ifrs 3 In Accounting For Goodwill? (Determinante Primene Standarda Msfi 3 Prilikom Računovodstvenog Tretmana Gudvila)," Ekonomske ideje i praksa, Faculty of Economics and Business, University of Belgrade, issue 42, pages 15-29, September.
    • Handle: RePEc:beo:ekidpr:y:2021:i:42:p:15-29
    as

    Download full text from publisher

    File URL: https://www.ekof.bg.ac.rs/journals/eip/42/02.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    goodwill; business combinations; IRFS 3;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:beo:ekidpr:y:2021:i:42:p:15-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Goran Petrić (email available below). General contact details of provider: https://edirc.repec.org/data/efbeoyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.