Authors: Hasnah Shaari; Zaimah Abdullah; Saliza Abdul Aziz
Addresses: College of Business, Accounting Building, University Utara Malaysia, 06010 Sintok, Kedah, Malaysia ' College of Business, Accounting Building, University Utara Malaysia, 06010 Sintok, Kedah, Malaysia ' College of Business, Accounting Building, University Utara Malaysia, 06010 Sintok, Kedah, Malaysia
Abstract: The main objectives of this study are to investigate the disclosure of assets impairment by Malaysian public companies and the compliance to FRS 136 impairment of assets. The study also tries to identify the demographical characteristics of companies who were affected by the adoption of this standard. 100 companies which recognised impairment loss for the year 2003 were selected as our sample and the data were analysed using descriptive statistics. Our study revealed that the compliance to the disclosure requirements as per FRS 136 was unsatisfactory, except for two main requirements which were disclosing amount in the income statement and the nature of assets. The study also documented that property, plant and equipment (PPE) represent the highest tendency of non-current assets subjected to impairment loss. Indeed, the analysis also revealed that companies which poses large amount of PPE recognised high impairment loss than companies that carry small size of PPE.
Keywords: impairment of assets; asset disclosure; FRS 136 compliance; financial reporting standards; FRS; Malaysia; public listed companies; demographics; impairment loss; property; plant and equipment; accounting standards.
International Journal of Critical Accounting, 2013 Vol.5 No.2, pp.173 - 186
Available online: 22 Jul 2013 *Full-text access for editors Access for subscribers Purchase this article Comment on this article