Discretionary Behavior with Respect to the Adoption of SFAS 142 and the Behavior of Security Prices

• Main Author: ZANG, Yoonseok
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: Accounting standards; Earnings; Goodwill accounting; Stock prices; Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/168; https://ink.library.smu.edu.sg/context/soa_research/article/1167/viewcontent/RFArevisedtocopyeditor.pdf
• Institution: Singapore Management University

In June 2001, the Financial Accounting Standards Board (FASB) issued SFAS 142, Goodwill and Other Intangible Assets, which takes a very different approach to how goodwill is accounted for subsequent to the initial recognition. The new statement requires that goodwill no longer be amortized, but inst...