Taiwan FASB Statement No.35 Assets Impairment and Earnings Management
碩士 === 國立雲林科技大學 === 會計系研究所 === 94 === Since the declaration of Taiwan FASB Statement No.35, valuation of assets on financial report has change from historical cost basis toward fair value basis and which causes impact to some of the companies. This study examines the relation between write-downs of...
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| Other Authors: | |
| Format: | Others |
| Language: | zh-TW |
| Published: |
2006
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| Online Access: | http://ndltd.ncl.edu.tw/handle/30319855970916419069 |
| Summary: | 碩士 === 國立雲林科技大學 === 會計系研究所 === 94 === Since the declaration of Taiwan FASB Statement No.35, valuation of assets on financial report has change from historical cost basis toward fair value basis and which causes impact to some of the companies.
This study examines the relation between write-downs of assets and earning management and focus on whether companies use write-downs to manipulate earnings. We included companies that has write-downs of assets during 2005 as our samples and use methodologies including single variable analysis and multiple regression model. The study has two objectives. First, does companies of different performance significantly differ in their write down level? Second, could relation between discretionary accruals and company performance show that companies are using discretionary accruals for a big bath?
The empirical results of this study show performance and write down level are negatively related which shows companies with low performance used write-downs to take a big bath during the first year of the No.35 declaration. Results also show performance and discretionary accruals are positively related. Companies with low performance are more likely to use their accruals to lower their income. However, this result is not significant while using percentage of earnings change and net profit margin as proxy.
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