Companies may be misleading investors by not openly assessing the true value of assets
- Written by Peter Wells, Professor, Accounting Discipline Group, University of Technology Sydney
Some companies are taking years to recognise asset impairments, and may be misleading investors who are not privy to the valuation decisions. Research shows this is because managers of many firms think or hope that assets are not overvalued.
This occurs when companies either don’t recognise, or delay the recognition of asset impairments....