Do goodwill impairments affect audit opinions? Evidence from China

There has been a steady growth of goodwill impairments in the Chinese stock market since the adoption of the impairment approach in accounting. The influence of goodwill impairments on a firm’s financial position and profitability give reason to doubt its current and future performance. We examine whether auditors, as a crucial external monitor, identify the information risks of goodwill impairments and express their concerns about financial reporting quality in their audit opinions. Using a sample of firms listed on China’s A-share market from 2007 to 2017, we test the association between goodwill impairments and the type of audit opinion received in the same financial period. Our findings are as follows. First, the probability of receiving a modified opinion increases with the amount of goodwill impairments. Second, the positive association between goodwill impairments and modified audit opinions is driven primarily by earnings management risks. Third, this positive association is more salient when auditors are industry experts and there is no auditor–client mismatch. Fourth, auditors are more sensitive to the amount of goodwill impairments than to their mere existence. Overall, we document that auditors perceive goodwill impairments as a signal of information risks and communicate their concerns to investors to avoid litigation.     

频繁并购重组与异常审计收费

以2012—2017年A股上市公司为样本，采用异常审计费用衡量审计师对上市公司频繁并购重组的风险溢价，探究企业频繁并购重组与审计师风险溢价收费的关系，研究发现企业频繁并购重组会导致审计师风险溢价提高。从商誉和盈余管理角度探究其路径机制发现，商誉和真实盈余管理是频繁并购重组导致更高审计师风险溢价两个重要中介变量，而应计盈余管理并没有发挥中介作用，即频繁并购重组企业操纵利润的手段倾向于采用真实盈余管理，而非应计盈余管理。     

对自创商誉会计的思考

自创商誉符合资产的定义,应予以确认,并采用公允价值计量。当企业在连续若干年内总体市价都大于可辨认净资产公允价值时,开始确认自创商誉,并在以后逐年评估,对自创商誉不断再确认。对自创商誉的摊销可采用逐年重估法。     

Market valuations of bargain purchase gains: are these true gains under IFRS?

This study investigates stock market valuations for bargain purchase gains (BPGs) in the context of International Financial Reporting Standards (IFRS) between 2005 and 2014. Motivated by the increased frequency and high concentration of BPGs in Europe, we study a sample of acquirers listed on the London Stock Exchange to assess the value relevance of BPGs (a) under discrepant disclosure practices (i.e. disclosure versus non- disclosure of the reasons for the gains), (b) before and after the revision of IFRS 3, and (c) considering different income classifications for BPGs (operating or non-operating earnings). BPGs, on average, are not significantly valued by the stock market. However, the post-IFRS 3 revision period, marked by stricter measurement criteria and additional disclosure requirements, witnessed a significant shift in firm valuations. BPGs for which the reason for the gain is disclosed are positively valued only in the post-IFRS 3 revision period. BPGs are consistently perceived as value irrelevant for those firms which fail to comply with mandated IFRS 3 disclosure requirements regarding the reason for the gain. Finally, BPGs classified as a component of non-operating income with sufficient note disclosure on the reason for the gain are significantly associated with prices and returns.     

新会计准则下商誉减值会计问题探讨

2006年年颁布的企业会计准则对有关商誉的会计处理进行了较大的改革，但新会计准则中商誉减值会计面临着计量问题和减值确认难题。以某一上市公司为例，分析我国企业在执行商誉减值时存在的弊端，提出要单独颁布商誉减值测试准则、完善商誉会计信息披露，采取积极措施加强资本市场的流动性以改进商誉减值会计处理。     

The effect of a potential borrower's reporting reputation and financial condition on commercial loan officers' estimates of forecast bias and subsequent loan recommendations

This paper investigates whether a potential borrower's reporting reputation and financial condition affect commercial loan officers' loan judgments and recommendations after receiving an earnings forecast that predicts improved financial performance. The results suggest that the earnings forecast is perceived as more credible in the presence of (1) a reputation for objective reporting, and (2) strong financial condition. Also, a reputation for objective reporting allowed the borrower to more credibly convey the expected improvement in performance when financial condition was weak. However, while financial condition predictably affects loan recommendations (likelihood of granting the loan, interest rate), reporting reputation does not. While we find that commercial loan officers discount forecasts under similar circumstances as stock analysts, results suggest that the consequences of developing a reputation for aggressive reporting (e.g., aggressive selection of accounting methods and estimates within GAAP) may be greater in a stock valuation setting (prior research documents lower stock prices) than in a loan setting.     

The Differential Value Relevance of S&P's Core Earnings Versus GAAP Earnings: The Role of Stock Option Expense

In 2002, Standard & Poor's (S&P) introduced Core Earnings as a proprietary, uniform earnings metric, with the goal of improving financial reporting. The distinguishing feature of Core Earnings is its consistent treatment of seven adjustments to GAAP earnings for which there is no consensus adjustment by managers and analysts. We use stock price and return data to assess whether investors perceive Core Earnings to be more value relevant than GAAP earnings. The implementation of FASB 123R changed the calculation of GAAP and Core Earnings. This change allows us to assess the role of stock option expense in the valuation of earnings numbers by partitioning the sample into pre‐ and post‐FASB 123R periods and creating consistent measures of GAAP and Core Earnings. Our price results indicate that Core Earnings is more value relevant than GAAP earnings in the pre‐period after controlling for stock option expense, and in the post‐FASB 123R periods. The price results provide empirical evidence consistent with S&P's expectation that a uniformly calculated earnings measure is a more consistent and useful indicator of current performance and future earnings.     

重要性水平在自创商誉处理中的运用

知识经济时代，自创商誉作为企业价值的组成部分，对企业发展的影响深远，然而如此具有高价值相关性的信息却被排除在财务报表之外。文章将重要性水平运用于自创商誉的处理中，以自创商誉的构成因素——品牌为例测算了品牌资产对企业的价值贡献度，然后判断其重要性水平。高于重要性水平的企业信息需要披露给信息使用者，这样便于将重要的自创商誉信息传递给信息使用者。     

Estimating the Equity Risk Premium Using Accounting Fundamentals

This study uses recent developments in the theoretical modelling of the links between unrecorded accounting goodwill, accounting profitability and the cost of equity, together with Capital Asset Pricing Model (CAPM) betas, to estimate the ex-ante equity risk premium in the UK. The results suggest that, over our sample period from 1968 to 1995, the premium has been in the region of 5%. Our estimate lends support to the view that the ex-ante equity risk premium is substantially less than the historical average of the excess of equity returns over the risk-free rate, and is similar to the rates applied recently by UK competition regulators.     

商誉权法律属性争议之澄清

商誉权的法律属性有知识产权说、复合权说和人格权说三大观点。知识产权是建立在公共产品上的非绝对化私权;商誉不具有公共产品的属性,商誉权作为绝对的私权与知识产权有着本质区别。复合权说强调商誉权的无形财产权属性,而通过与性质最相似的形象权比较可知,复合权说夸大了商誉权的保护范围而存在理论缺陷。商誉权是一种特殊的人格权。