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Determinants Of A Firm's Approach To Accounting For Goodwill, Christine E. Taylor

Theses : Honours

The purpose of this study is to ascertain factors that may explain an Australian firm's approach to accounting for goodwill and to examine the diversity that existed in accounting for goodwill in the pre-standard era. Utilising a costly contracting framework, determinants of the accounting policy choice are proposed and three separate groups of hypotheses are formulated. The ex ante hypothesis in this study utilises industry as an explanatory variable that would be expected to explain the motivations of accounting choices by firms. It was found that there is no significant association between industry classification and the choice of method in …