Document Type
Article
Language
eng
Publication Date
11-2009
Publisher
The Clute Institute
Source Publication
Journal of Business and Economics Research
Source ISSN
2157-8893
Abstract
This paper examines goodwill on corporate balance sheets. Specifically, the paper measures the extent to which goodwill exists on corporate balance sheets and the degree of goodwill write-downs that have occurred recently. We report on our study and a study by Intangible Business, which show that many firms carry substantial amounts of goodwill on their 2008 balance sheets. Thus, because of the recent downturn in the economy and the markets, the potential for big bath earnings management for 2008 and 2009 exists. In addition, because of reductions in expected returns on pension plan assets, many firms are likely to record much higher pension expenses. We expect that the combination of goodwill impairments and increased pension expense will have significant effects on both the amount and the quality of earnings for 2008 and, possibly, 2009.
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Recommended Citation
Giacomino, Don and Akers, Michael, "Goodwill And Goodwill Write-Downs: Their Effects On Earnings Quality For 2008 And 2009" (2009). Accounting Faculty Research and Publications. 100.
https://epublications.marquette.edu/account_fac/100
Comments
Published version. Journal of Business & Economics Research, Vol. 7, No. 11 (November 2009): 9-18. DOI. © 2009 The Authors. Used with permission.