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Discussion of ‘An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136’
Author(s) -
Zhuang Zili
Publication year - 2016
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12199
Subject(s) - equity (law) , discretion , asset (computer security) , business , political science , computer science , computer security , law
This article discusses the paper by Bond, Govendir, and Wells (2016). The comments focus on four issues: (i) the evaluation of the book to market ratio of equity as an impairment indicator; (ii) the managerial discretion on realized impairments; (iii) the interpretation of the increase in asset impairment after transition to IFRS; and (iv) the role of cross‐sectional analysis in investigating asset impairments.