Financial reporting

assignment1.docx
“Due to the discretion inherent in the accounting standards, the outcome of the impairment test for goodwill might be subject to managerial opportunism and bias.” Guidelines The essay should include an introduction, main body and conclusion. In the introduction, you should define the concept of goodwill, illustrate its accounting treatment according to IAS 36, by focussing, in particular, on the impairment test and the aspects discretion inherent to it, and signpost the points that will be discussed in the essay. In the main body, you should include a discussion of all key issues raised in the question. This should include (but not necessarily be limited to): A discussion of the arguments for and against the influence that managerial opportunism and bias have on the recognition of goodwill impairment. Relevant examples from real businesses should be illustrated to support your discussions. An analysis of the statement from different perspectives. A discussion of the results of relevant academic studies that have investigated the role of managerial opportunism and bias on the recognition of goodwill impairment. You should quote both studies that have found evidence in support of the statement and studies that have found evidence against the statement. Research on the topic is key to achieving high marks. eA critical discussion of the key points in the question. The essay should not be a summary of the lecture notes or ‘copy-pasted’ from various sources, but should express your opinion and critical evaluation of the sources analysed. In the conclusion, you should include a summary of the key points illustrated in the essay and indicate whether you agree or disagree with the quote clearly explaining the reasons why.