In this paper, we investigate asset impairment standards particularly as they relate to differences\r\nbetween United States generally accepted accounting principles (US GAAP) and international financial\r\nreporting standards (IFRS) for the impairment of long-lived assets in the shipping industry and the\r\ncorresponding impact on financial statement analysis ratios. Our study provides evidence that return\r\non assets and asset turnover ratios diverge significantly as a result of the difference between US GAAP\r\nand IFRS on asset impairments within the shipping industry. Reporting differences between US\r\nGAAP and IFRS can impede the comparability of financial reporting. Asset impairment accounting\r\ndifferences can have significant differences for companies reporting under these two accounting\r\nstandards.
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