During 2008 the financial crisis became a global phenomenon, causing havoc across the global stock markets, forcing the prices of real-estate worldwide to plummet, forcing a huge rise in bankruptcy and making economic recession the reality in most parts of the world. Even though many companies and countries slowly have returned to growth, due in large part to huge financial aid packages provided by governments worldwide, the effects of the crisis are still very visible. The financial crisis has made it even more important, that the estimations and valuations performed as part of the impairment test are as thorough and realistic as possible. Based on the empirical data of the selected Danish companies’ annual reports and the recommendations provided by experts, this thesis will attempt to establish the main issues surrounding the process of testing goodwill for impairment and how the selected companies seek to address these issues. Furthermore the thesis will aspire to provide insights on how the crisis has affected these issues. Based on the analysis of the collected data, the main issues associated with the task of testing for impairment, appear to be the large amount of subjective estimations and the insecurities naturally associated with these. This is particularly evident regarding the budgeting of the future cash flows. This also appears to be the area affected the most by the current state of the economy. The analysis of the annual reports, reveal that it is very difficult to extract knowledge and information on how the specific companies have dealt with the identified issues, as the level of detail of the information concerning these matters leaves a lot to be desired. While the companies do appear to comply with the current legislation, various user groups of the annual report would however certainly appreciate a greater level of information. Whether this gap will be minimized remains to be seen, but unless the companies have some sort of incentive to do so, it seems unlikely.
|Uddannelser||HD Regnskab og Økonomistyring, (HD uddannelse) Afsluttende afhandling|