DISCRETIONARY ACCOUNTING OF GOODWILL IMPAIRMENT OF LISTED FINAN-CIAL SERVICE FIRMS IN NIGERIA

Abstract

This study assessed discretionary accounting of goodwill impairment of listed financial service firms in Nigeria. Secondary source of data was used which was obtained from the annual reports of the firms. Logistic regression was employed in the analysis of the data. The results from the regression analysis showed that comparability motive and big bath have a significant positive effect on the discretionary accounting on goodwill impairment of listed financial service firms in Nigeria. The study concludes that comparability motive, and big bath are determinants of discretionary accounting of goodwill impairment of listed financial service firms in Nigeria. The study therefore recommends among others that accounting supervisory body should strengthen regulatory oversight and monitoring of goodwill impairment assessments, emphasizing the scrutiny of impairment decisions and examining the patterns and motives behind impairment charges. Regulators should conduct periodic reviews to identify potential discretionary accounting. There should also be Introduction of stringent disclosure requirements mandating comprehensive and transparent reporting on the motives and underlying reasons influencing goodwill impairment assessments.