Disclosure and measurement requirements for IFRS (3) and IAS(36), regarding goodwill according to the opinions of accountants and auditors

Abstract

This study aimed to investigate the views of relevant stakeholders regarding  practices of applying International Financial Reporting Standard 3 Business Combinations and International Accounting Standards 36 impairment of assets - goodwill – in Saudi joint stock companies,  and to sort the difficulties and recommend solutions related to the application and ways to improvement. A random sample size of 94 participated in the questionnaire for this study. The results revealed that there is difficulties in applying the measurement and disclosure requirements of the impairment test for goodwill, in particular inputs relating to value in use and discount measurement. The results also showed keenness regarding improving disclosure requirements for these two accounting standards, while also calling the IASB to revisit allowing amortization of goodwill in line with accounting information relevance.