Impairment of assets disclosure by public listed companies

• Main Authors: Shaari, Hasnah, Abdullah, Zaimah, Abdul Aziz, Saliza
• Format: Monograph
• Language: English
• Published: Universiti Utara Malaysia 2006
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/2676/1/Pages_from_09062010144127011.pdf; http://repo.uum.edu.my/2676/; http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000241727

The main objective of this study is to investigate how Malaysian public companies disclose the information of asset impairment based on newly issued standard FRS 136 2004 Impairment of Assets. The study also tries to identify the demographical characteristics of companies those were affected by the adoption of this standard. 100 companies listed at the main and second board which recogines impairment loss for the year 2003 were selected as our sample and the data were analyzed using descriptive statistics. Our study report that the compliance to the disclosure requirements as per FRS 136 2004 was unsatisfactory, except for two main requirements which were disclosing amount in the income statement and the nature of assets.The study also documented that property, plant and equipment (PPE) represent the highest tendency of non-current assets subjected to impainnent loss. Indeed, the analysis also revealed that companies which poses large amount of PPE recognized high impairment loss than companies carry small size of PPE.