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's E0109 and IASB's 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' abilities and integrity as well as sound corporate governance mechanisms (such as audit committees) in auditing the 'fair' 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.

Corporate accounting in Australia

"The third edition of Corporate Accounting in Australia presents a comprehensive and contemporary explanation of Australian corporate accounting. Previous editions of the book, published in 1998 and 2001, established the book's reputation for excellence, with its user-friendly approach, keenly appreciated by both students and lecturers. This edition retains the accessible writing style and logical chapter format and sequence of its forerunners, and has been revised to reflect current developments, particularly with regards to the international harmonisation of accounting standards."

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.

Accounting : a framework for decision making

Thoroughly updated and re-sequenced in response to market feedback, Accounting: A Framework for Decision Making is an ideal first year accounting principles text. Presented in a straightforward style, the third edition focuses on key concepts and illustrates each concept with clear graphical or textual explanations and examples. The latest AASB standards and accounting techniques underpin the content throughout and new and revised questions have been added to the end of chapter material. With an accessible technical focus, Accounting: A Framework for Decision Making has a clear and broad content structure that means the book lends itself to both majors and non-majors courses.

Anomalies in the oversight of Australian auditors

This commentary identifies and comments on anomalies in the oversight of Australian auditors and audit firms. Regulatory and professional oversight and inspection of Australian auditors and audit firms arise from a number of sources, highlighting its multi-faceted nature. This makes it impossible to identify a single body with ultimate responsibility for auditor oversight. Three recent Australian reviews commissioned by the Financial Reporting Council, together with an evaluation of the roles of the various regulatory and professional bodies, are used in this commentary as a platform from which to identify a number of significant anomalies in oversight processes. Major anomalies highlighted arise from the overlapping nature of the duties and functions of the various bodies and the variation in oversight across different categories of audit service providers. Policymakers should closely examine the issues raised in the paper if auditor oversight is to be undertaken in an effective and efficient manner.

The determination of bioactive compounds using HPLC with chemiluminescence detection

This dissertation investigated the selectivity and sensitivity of high performance liquid chromatography with various chemiluminescence detection protocols for the determination of biologically important compounds in beverages, wines and biomedical matrices. The work showed conclusively that this technology could successfully identify wines from different geographic locations and also monitor their maturation.