Authors: Aikaterini Laskaridou

Title: IMPAIRED ASSET ROOTED MANAGERIALS PRACTICES ON IFRS PRINCIPLES: SOME EVIDENCE FROM GREEK LISTED COMPANIES

Abstract

The purpose of this study is to embrace: (a) topics of asset impairment management in the IFRS constitutional legality  (b) statistical inference validating impairment discretionary charges and firms’ earning experience. Problem utterance: The Impairment Accounting Standard (IAS 36), institute new conditions for asset impairment provided to meet accrued loss amounts. Earning Management through the use of asset impairments within constrains of taking accounting process results to income manipulation representing (a) an external demand to contact earnings forecasts (b) internal demand for communicating board’ level performance. We aspire to bring forward  the issue of earnings discretion and provide an answer on the prevailing content of asset impairment. The sample constituted of 236 firms, listed in the Greek Stock Exchange Market on the basis of impairment observations. We analyze the earnings levels for impairer companies, for 2004-2012 years. Results and Conclusion: Findings suggest (a) firms recording impairment charges possess lower earnings than do their counterparts not recording write downs and (b) the impairment losses are likely reported as timely opportunity to taking “big bath” and increasing future earnings.