Deterioration of the trade fund in international regulations: Study of a sample of Spanish listed groups
Deterioro del fondo de comercio en las normas internacionales: estudio de una muestra de grupos cotizados españoles
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Recognition and valuation of the trade fund is an issue of complexity, having been the object of debate and discussion over decades. The aim of this work is to
conduct an analysis of the national and international accounting regulation regarding the trade fund and to contrast its application in a sample of business groups listed in Spain, specifically those that were part of the IBEX 35 index between 2005-2016.
The results obtained evidence an improvement in information quality over time, although we detected that entities are more reluctant to providing certain information such as that related to the qualitative factors that justify the recognition of the trade fund. The work also analyses the amount of the trade fund deterioration recorded in the profit and loss accounts of these companies, observing relatively small amounts ―nil in many cases―, with the financial sector showing the highest amounts in almost all the years. Furthermore, by the regulations in terms of trade fund valuation. We conclude that, despite the
economic crisis suffered by Spain during the period under study, the groups make small losses in the value of this asset. the groups analyzed apply to a great extent the information requirements established
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