This is an Open Access book.

The accounting treatment of goodwill has been widely debated, particularly regarding whether amortization should be reintroduced. After the IASB abolished amortization in IFRS 3 in 2004, the post-implementation review of IFRS 3 (PiR 3) was conducted from 2013 to 2015. The PiR 3 highlighted concerns that the impairment-only approach tends to cause the “too little, too late” issue, suggesting the reintroduction of amortization as one of the key primary candidates for a solution. During the process of the IASB responding to PiR 3, scandals such as the collapse of Carillion and massive goodwill write-downs by GE and Kraft Heinz reignited the debate. Critics argue that the impairment-only approach often results in “too little, too late.” Although the debate over whether goodwill should be amortized continued for the next 20 years without a resolution, the IASB halted the discussion in 2022; it now aims for a solution through disclosure, as users do not support the reintroduction of amortization.

This study examines the key arguments in favor of and against goodwill amortization through an analysis of IASB and ASAF meetings, a review and analysis of prior theoretical research, a survey of prior empirical research, questionnaire- and interview-based surveys of stakeholder opinions, and original empirical research. It also explores accounting education as a potential factor influencing our findings. Through these analyses, this study highlights how differences in accounting education, jurisdictional norms, and stakeholder interests contribute to conflicting perspectives. The survey conducted in Japan reveals that preparers, users, and auditors overwhelmingly support the amortization-with-impairment approach, diverging from international trends. Empirical research using Japanese archival data shows evidence consistent with the notion that market participants often anticipate impairment losses before they are formally recognized, reinforcing concerns over the “too little, too late” issue. Moreover, goodwill accounting is not a simple dichotomy, as discussed by the accounting standards-setting body, but a complex structural issue. Furthermore, accounting education can influence stakeholder perspectives, especially those of auditors, in Japan. The study concludes that understanding these diverse viewpoints is essential for fostering meaningful dialogue on goodwill accounting reforms.

About the Author

Yoshihiro TOKUGA

He received his PhD in Economics from Kyoto University. He was a Professor at Kyushu University before joining Kyoto University, where he served as Dean of the Graduate School of Management and as Vice President. He is currently a Professor of Accounting and Vice President at Kyoto University of Advanced Science (KUAS). He also held visiting appointments at the University of Washington and Institute for Monetary and Economic Studies, Bank of Japan (IMES).

His research focuses on international and financial accounting. He has published widely in these fields and has authored and edited several influential books. He has received multiple distinctions from the Japan Accounting Association (JAA), including Best Paper Award, Best Book Award, Honorary Membership, and the Outstanding Contributor Award from the Japanese Association for International Accounting Studies (JAIAS). He has served as President of JAA and the Asian Academic Accounting Association (AAAA), and as Vice President of the International Association for Accounting Education and Research (IAAER).

His public service includes appointments as Chairperson of the Financial Services Agency’s Business Accounting Council (BAC) and as a board member of the Certified Public Accountants and Auditing Oversight Board (CPAAOB) and the Accounting Standards Board of Japan (ASBJ).

Masaki YONEYAMA

He received his PhD in Economics from the University of Tokyo. Prior to joining the University of Tokyo, he served as a Professor at the Faculty of Economics, Gakushuin University, and the Graduate School of Accountancy, Waseda University. He has been a Professor at the Graduate School of Economics, the University of Tokyo, since 2012.

From 2001 to 2002, he served as a visiting researcher at the Mitsui Life Financial Research Center in Ann Arbor, University of Michigan. His primary research area is financial accounting, with a particular emphasis on accounting standard-setting. He has published extensively in this field and has authored and edited several influential books. He has received academic awards from both the Japan Accounting Association (JAA) and the Japanese Association for International Accounting Studies (JAIAS). He currently serves as President of JAIAS and has held public appointments as a member of the Financial Services Agency’s Business Accounting Council (BAC) and of the Accounting Standards Board of Japan (ASBJ). His major book-length works include Accounting for Impairment (sole-authored), An Analysis of the Consistency of Accounting Standards (sole-authored), and Release from Investment Risk (co-authored with Kenichi AKIBA and Yuko ASAMI).

"About this title" may belong to another edition of this title.

Store Description

I mainly carry imported books from South East Asia / South Asia for readers of all Age Groups.

Visit Seller's Storefront

Seller's business information

PLETOS INC
6931 51st Avenue, WOODSIDE, Woodside, NY, 11377, U.S.A.

Sale & Shipping Terms

Terms of Sale

We accept return for those books which are received damamged. Though we take appropriate care in packaing to avoid such situation.

Right of withdrawal

If you are a consumer you can withdraw from the contract in accordance with the following. Consumer means any natural person who is acting for purposes which are outside his trade, business, craft or profession.

Information regarding the right of withdrawal

Statutory right to withdraw

You have the right to withdraw from this contract within 14 days without giving any reason.

The withdrawal period will expire after 14 days from the day on which you acquire, or a third party other than the carrier and indicated by you acquires, physical possession of the last good or the last lot or piece.

To exercise the right of withdrawal, electronically fill in and submit a clear statement on our website, under "My Purchases" in "My Account". We will communicate to you an acknowledgement of receipt of such a withdrawal on a durable medium (e.g. by e-mail) without delay.

To meet the withdrawal deadline, it is sufficient for you to send your communication concerning your exercise of the right of withdrawal before the withdrawal period has expired.

Effects of withdrawal

If you withdraw from this contract, we will reimburse to you all payments received from you, including the costs of delivery (except for the supplementary costs arising if you chose a type of delivery other than the least expensive type of standard delivery offered by us).

We may make a deduction from the reimbursement for loss in value of any goods supplied, if the loss is the result of unnecessary handling by you.

We will make the reimbursement without undue delay, and not later than 14 days after the day on which we are informed about your decision to withdraw from this contract.

We will make the reimbursement using the same means of payment as you used for the initial transaction, unless you have expressly agreed otherwise; in any event, you will not incur any fees as a result of such reimbursement.

We may withhold reimbursement until we have received the goods back, or you have supplied evidence of having sent back the goods, whichever is the earliest.

You shall send back the goods or hand them over to Books Puddle, New York, New York, U.S.A., without undue delay and in any event not later than 14 days from the day on which you communicate your withdrawal from this contract to us. The deadline is met if you send back the goods before the period of 14 days has expired. You will have to bear the direct cost of returning the goods. You are only liable for any diminished value of the goods resulting from the handling other than what is necessary to establish the nature, characteristics and functioning of the goods.

Exceptions to the right of withdrawal

The right of withdrawal does not apply to:

The delivery of newspapers, journals or magazines with the exception of subscription contracts; and
The supply of digital content which is not supplied on a tangible medium (e.g. on a CD or DVD) if you accepted when you placed your order that we could start to deliver it, and that you could not withdraw once delivery had started.

Shipping Terms

Shipping rates within U.S.A.

Shipping rates within U.S.A.
Order quantity	12 to 19 business days	12 to 14 business days
First item	� 2.95	� 5.16

Delivery times are set by sellers and vary by carrier and location. Orders passing through Customs may face delays and buyers are responsible for any associated duties or fees. Sellers may contact you regarding additional charges to cover any increased costs to ship your items.