ASC 820 level 3 net assets and goodwill impairment losses
by Christopher J. Skousen; Li Sun
International Journal of Economics and Accounting (IJEA), Vol. 7, No. 3, 2016

Abstract: Ramanna and Watts (2012) suggest that firms with more unverifiable or unobservable net assets have greater incentives to reduce goodwill impairment losses. This study complements Ramanna and Watts (2012) by providing an additional test in a unique setting because level 3 assets and liabilities under ASC 820 are unverifiable or unobservable in nature. Using 701 firm-year observations from 2008 to 2013, we document a significant and negative relation between level 3 net assets of acquiring firms and goodwill impairment losses, supporting Ramanna and Watts (2012).

Online publication date: Sat, 22-Oct-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Accounting (IJEA):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email