Browsing by Author "Rehnberg, Pernilla"

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COMMENT LETTER ON THE EXPOSURE DRAFT (ED/2009/5) Fair Value Measurement
(2009-09-30T07:30:41Z) Marton, Jan; Rehnberg, Pernilla; Runesson, Pernilla
IFRS Implementation in Listed Companies – Identification of Factors Leading to Inconsistent Application
(2008-06-17T13:39:21Z) Lundqvist, Pernilla; Marton, Jan; Pettersson, Anna Karin; Rehnberg, Pernilla
Abstract. This paper presents an exploratory study of factors that lead to inconsistent application of International Financial Reporting Standards (IFRS). We study the reasons for diversity in implementation of IFRS. The literature suggests a large number of different factors that help explain accounting choices, both deliberate and non-deliberate. We use accounting practice as a starting point. Through observation two cases are studied. First, the entire process of IFRS implementation is studied, from local GAAP to full IFRS. Second, we study purchase price allocation in business combinations accounted for according to IFRS 3. The method used is participant observation, where the researcher participated in the actual application of IFRS in selected listed companies. All observations were done in a Swedish setting. We relate our findings to those factors suggested in the existing literature. Consistent with the literature we find that bonus plans, national legal setting and existing practice are influential factors. Additional factors, not discussed much in the literature, are lack of resources and knowledge, and the development of local practice. We also find an interaction between existing practice and economic choice, suggesting that combining different parts of the accounting choice literature would be beneficial.
Redovisning av immateriella tillgångar i samband med förvärvskalkylering - principbaserade redovisningsregler och relevans
(2012-10-26) Rehnberg, Pernilla
In recent decades we have moved into an economy that is both knowledge-driven and technology-based. This has resulted in intangible assets representing an increasingly larger proportion of total investments carried out by companies. The development has led to questions about how intangible assets should be reported, and this is discussed by standard-setters, accounting professionals and researchers. There are different views on how such assets should be recognized, and we lack a uniform opinion. A new accounting standard for business combinations, IFRS 3, was introduced in 2005. The introduction of this standard aimed to finally settle the issue of how goodwill should be reported in a company's financial statements. This thesis presents a study of how companies report intangible assets in business combinations when applying the acquisition method based on IFRS 3 and how company incentives affect a faithful representation in the identification of intangible assets. Furthermore, the relevance for the user is examined. The effect on relevance of intangible assets reported separately from goodwill is studied. All business combinations carried out by listed Swedish companies for the period 2005 – 2007 have been studied. The relations have been tested empirically using statistical models. Results show that companies are influenced by political costs and contract costs. Small companies and companies that are not heavily indebted identify a smaller proportion of intangible assets. This implies that large companies and high debt companies apply principle-based rules in a better way. This is possibly a logical conclusion. Large companies have a broader circle of interested parties, and high debt companies are under the control of capital providers. This in turn leads to these companies also taking the identification of intangible assets more seriously and they do make a greater effort. On the other hand, small low debt companies seem to make use of the possibility to influence the accounts based on their incentives. This situation could be problematic from a user perspective. The study shows, however, that relevance for the financial statement user does not increase by separating intangible assets from goodwill. A final solution to the question of how goodwill should be reported has therefore not been found either. However, the study indicates that companies that have a greater tendency to identify intangible assets also are companies with more relevant financial statements overall. The results in this study may be helpful to standard-setting bodies in their development of future accounting standards in the area.