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Preparers’ and non-preparers’ lobbying on the proposed prohibition of goodwill amortisation in ED3 ‘business combinations’
Dalarna University, School of Technology and Business Studies, Business Administration and Management.ORCID iD: 0000-0002-5043-6289
2012 (English)In: The Finnish Journal of Business Economics, ISSN 0024-3469, Vol. 63, no 3-4, 30-60 p.Article in journal (Refereed) Published
Abstract [en]

In this paper preparers’ and non-preparers’ positions regarding accounting for goodwill are examined through studying submitted comment letters on ED3 ‘Business Combinations’. Preparers have, because of economic consequences, incentives to lobby for the non-amortisation approach and non-preparers for the amortisation approach. As hypothesised, non-preparers are found to support amortisation of goodwill to a greater extent than do preparers. Moreover, the two groups’ supportive arguments, i.e. how they argue for or against the non-amortisation or amortisation approach, are studied. Again, as hypothesised, the results show that the two groups use the same type of ‘sophisticated’ framework based arguments instead of economic consequences arguments. Taken together the examination of the comment letters thus indicates that both preparers and non-preparers point at conceptual strengths and weaknesses, instead of pointing at the real cause of the lobbying activities, i.e. perceived economic consequences, when they try to affect the final outcome of the standard. These findings confirm earlier research which has suggested that self-interested lobbyists use accounting theories and concepts as useful justifications.

Place, publisher, year, edition, pages
2012. Vol. 63, no 3-4, 30-60 p.
Keyword [en]
Goodwill, Lobbying, Standard setting, Accounting theory, Positive accounting theory
National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis, General Microdata Analysis - others
URN: urn:nbn:se:du-12549OAI: diva2:623074
Available from: 2013-05-24 Created: 2013-05-24 Last updated: 2016-03-01Bibliographically approved
In thesis
1. Four Papers on Top Management´s Capital Budgeting and Accounting Choices in Practice
Open this publication in new window or tab >>Four Papers on Top Management´s Capital Budgeting and Accounting Choices in Practice
2012 (English)Doctoral thesis, comprehensive summary (Other academic)
Place, publisher, year, edition, pages
Uppsala: Uppsala universitet, 2012. 43 p.
, Doctoral thesis / Företagsekonomiska institutionen, Uppsala universitet, ISSN 1103-8454 ; 153
Capital budgeting method, cost of capital estimation, accounting choice, goodwill, disclosure compliance
National Category
Business Administration
urn:nbn:se:du-12551 (URN)
Public defence
2012-10-03, Hörsal 2, Kyrkogårdsgatan 10, 753 13 UPPSALA, Uppsala, 16:53 (Swedish)
Available from: 2013-05-31 Created: 2013-05-24 Last updated: 2016-02-02Bibliographically approved

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