Future orientation is a key element of IFRS financial reporting. Valuation of goodwill illustrates the challenge because when applying value in use calculations for impairment testing, it takes the future into account. Based on empirical data from 44 semi-structured and 10 follow-up interviews of prominent Finnish business managers, auditors, analysts, investors, financial supervisory authority, academics and media, the paper extends prior research which has used large data. The paper analyses impairment testing as a process where network of human and non-human actors produce numbers about the future. This process is a collective assemblage where many actors and many mediators (e.g. budgets, strategic plans, institutional analyses and guidelines) develop a process that is not understood as individual and subjective but as collective.
Main Research Area:
The Tenth Interdisciplinary Perspectives On Accounting Conference, 2012