13 research outputs found
Implications of the IFRS goodwill accounting treatment
Purpose – This paper aims to critically examine the change in accounting treatment for goodwill pursuant to international financial reporting standards (IFRSs) by reference to the Australian reporting regime.Design/methodology/approach – The paper discusses and compares the former Australian and the new IFRS treatments for goodwill. This comparison focuses on the advantages and potential complexities of the new method, with the aim of identifying the issues and challenges that preparers, independent auditors and those involved in corporate governance face in complying with the new requirements.Findings – The paper highlights that the identification and valuation of cash-generating units and goodwill require numerous assumptions to be made in estimating fair value, value in use and recoverable amount. Considerable ambiguity and subjectivity are inherent in the IFRS requirements.Research limitations/implications – Findings suggest that future research should examine how financial report preparers and corporate governance mechanisms are dealing with the complex change required by the new goodwill accounting treatment and how the many critical issues involved in auditing the resulting figures are being addressed.Practical implications – The research has practical implications for financial report preparers in identifying the issues that must be addressed in complying with the international goodwill accounting treatment. In turn, the paper highlights conceptual issues of relevance to auditors in their role of providing assurance on the resulting accounting numbers. It also has implications for others involved in corporate governance, such as audit committee members, in emphasising the areas in which they should be providing oversight of the accounting judgments. These issues are of relevance in any reporting regime based on IFRSs.Originality/value – While much has been written about the mechanics of the new goodwill accounting requirements, there has been a lack of critical research highlighting the many problems and ambiguities that will arise in the application of those rules.<br /
The role of a digital engineering platform in appropriating the creation of new work-related mind-set and organisational discourse in a large multi-national company
YesThis paper reports on a case study involving a strategic and innovative approach to creation of an in-house multifaceted digital engineering platform (the DEP) in overcoming a number of organisational problems at a multinational engineering company. The DEP was to be used strategically for simplifying the operational complexity and to create and appropriate new work-related mind-set and new organisational discourse to achieve homogenous working across the organisation, which is a huge challenge. The need for this system emerged from the need to resolve many organisational services related problems that carried phenomenal amount of processes, health and safety risks and to regulate, and, control the running of engineering project. Research data were collected using a longitudinal case study approach over a period of six months. In order to make sense of how the DEP helped the organisation, the study used certain elements of Extended Structuration Theory as a lens to assess the case study. This research discovered that the DEP succeeded in creating and appropriating work-related mind-set and organisational discourse. It also had real influence on working processes and employees at all levels while encouraging transparency, responsiveness, agility and accountability. It continues to help the organisation to govern, manage and maintain good standard of service but many barriers still remain
System Designers' User Models: A Comparitive Study and Methodological Critique
root cause of the behavioral problems often experienced when computer systems are implemented in organizations may be the inadequate conceptualizations of users that system designers hold. Designers may perceive users of systems to be individuals who need order and guidance in their lives and who are motivated by financial rewards rather than opportunities for personal growth. Thus, the designers may design tightly structured systems that lower the quality of working life and produce, as a consequence, the behavioral problems observed. Previous studies of designers in the United Kingdom, Sweden, and the United States found evidence that appears to support this hypothesis. The current replication study with Australian system designers produces similar evidence, but the conclusions drawn from the evidence are not clearcut for two reasons. First, it is now apparent that there are methodological problems with the research approach used. Second, an extension of the prior research suggests a contingency theory perspective of designers' user models may be needed
Corporate accounting in Australia
Retains the accessible writing style and logical chapter format and sequence of its forerunners,, and has been extensively revised to reflect current developments, particularly with the adoption in Australia of international accounting standards.<br /
The proposed goodwill impairment test - implications for preparers, auditors and corporate governance
Accounting for goodwill is again controversial as Australia adopts international accounting standards from 1 January 2005. The current method of accounting for goodwill will change dramatically as detailed in the AASB\u27s E0109 and IASB\u27s E03. Goodwill acquired in a business combination will no longer be amortised but rather goodwill will be tested for impairment annually (E03, para 54). This paper explores the potential impact of the proposed changes to goodwill accounting for preparers, auditors and those involved with corporate governance. We compare and discuss the current goodwill treatment and the proposed treatment of goodwill, demonstrating the advantages and complexities of the proposed treatment for preparers and auditors. Auditors will be required in many instances to use their professional judgment and rely on managements\u27 abilities and integrity as well as sound corporate governance mechanisms (such as audit committees) in auditing the \u27fair\u27 valuation of goodwill and associated transactions. This paper raises the issues and challenges that preparers, independent auditors and those involved in corporate governance will face with the introduction of the new treatment for goodwill accounting.<br /