Resistance to institutional change through decoupling
This study aims to understand how organisation cope with institutional pressures caused by the implementation of IFRS 3 Business Combinations. Applying an institutional theory, this study proposes that companies might resist the implementation of an impairment-only approach to acquired goodwill, as...
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| Format: | Article |
| Language: | English |
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Mediterranean Center of Social and Educational Research (MCSER)
2015
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| Online Access: | https://repo.uum.edu.my/id/eprint/18164/1/MJSS%206%204%202015%20531-538.pdf |
| _version_ | 1803627507820265472 |
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| author | Abdul Majid, Jamaliah Che Adam, Noriah |
| author_facet | Abdul Majid, Jamaliah Che Adam, Noriah |
| author_sort | Abdul Majid, Jamaliah |
| collection | UUM |
| description | This study aims to understand how organisation cope with institutional pressures caused by the implementation of IFRS 3 Business Combinations. Applying an institutional theory, this study proposes that companies might resist the implementation of an impairment-only approach to acquired goodwill, as required by the IFRS 3, especially at the early years of the implementation.The resistance is posited to be in the form of decoupling their accounting policy on goodwill impairment from the substantive implementation of the new system.A case study method was employed to describe the types of resistance to institutional change.The findings reveal two different decoupling strategies undertaken by Malaysian listed companies.In both
strategies, companies were perpetuating the old system of amortizing their goodwill, which was prohibited by the IFRS 3.However, to resist the institutional pressures of implementing the impairment-only approach to acquired goodwill, the old system was disguised as a new goodwill impairment system.The decoupling strategies highlighted is hoped to help relevant regulatory bodies to take note of impairment test of goodwill conducted by companies, and hence to ensure the true and fair value of goodwill reported on the financial statement. |
| first_indexed | 2024-07-04T06:07:10Z |
| format | Article |
| id | uum-18164 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:07:10Z |
| publishDate | 2015 |
| publisher | Mediterranean Center of Social and Educational Research (MCSER) |
| record_format | dspace |
| spelling | uum-181642016-06-26T02:17:17Z https://repo.uum.edu.my/id/eprint/18164/ Resistance to institutional change through decoupling Abdul Majid, Jamaliah Che Adam, Noriah HF5601 Accounting This study aims to understand how organisation cope with institutional pressures caused by the implementation of IFRS 3 Business Combinations. Applying an institutional theory, this study proposes that companies might resist the implementation of an impairment-only approach to acquired goodwill, as required by the IFRS 3, especially at the early years of the implementation.The resistance is posited to be in the form of decoupling their accounting policy on goodwill impairment from the substantive implementation of the new system.A case study method was employed to describe the types of resistance to institutional change.The findings reveal two different decoupling strategies undertaken by Malaysian listed companies.In both strategies, companies were perpetuating the old system of amortizing their goodwill, which was prohibited by the IFRS 3.However, to resist the institutional pressures of implementing the impairment-only approach to acquired goodwill, the old system was disguised as a new goodwill impairment system.The decoupling strategies highlighted is hoped to help relevant regulatory bodies to take note of impairment test of goodwill conducted by companies, and hence to ensure the true and fair value of goodwill reported on the financial statement. Mediterranean Center of Social and Educational Research (MCSER) 2015 Article PeerReviewed application/pdf en cc_by https://repo.uum.edu.my/id/eprint/18164/1/MJSS%206%204%202015%20531-538.pdf Abdul Majid, Jamaliah and Che Adam, Noriah (2015) Resistance to institutional change through decoupling. Mediterranean Journal of Social Sciences, 6 (4). pp. 531-538. ISSN 2039-9340 http://doi.org/10.5901/mjss.2015.v6n4p531 doi:10.5901/mjss.2015.v6n4p531 doi:10.5901/mjss.2015.v6n4p531 |
| spellingShingle | HF5601 Accounting Abdul Majid, Jamaliah Che Adam, Noriah Resistance to institutional change through decoupling |
| title | Resistance to institutional change through decoupling |
| title_full | Resistance to institutional change through decoupling |
| title_fullStr | Resistance to institutional change through decoupling |
| title_full_unstemmed | Resistance to institutional change through decoupling |
| title_short | Resistance to institutional change through decoupling |
| title_sort | resistance to institutional change through decoupling |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/18164/1/MJSS%206%204%202015%20531-538.pdf |
| work_keys_str_mv | AT abdulmajidjamaliah resistancetoinstitutionalchangethroughdecoupling AT cheadamnoriah resistancetoinstitutionalchangethroughdecoupling |