Niklas Sandell
Senior lecturer
Writing write-downs : the rhetoric of goodwill impairment
Author
Summary, in English
Purpose
The aim of this paper is to study the rhetoric of goodwill impairment, more specifically rhetoric, as it is constructed in the form of accounts (i.e. statements that explain unanticipated or untoward behavior). The authors argue that goodwill impairment is not only a technical matter but also a rhetorical practice by means of which external scrutiny is responded to.
Design/methodology/approach
The data corpus consists of explanations provided by corporations regarding impairment of goodwill. Data were collected from annual reports from companies quoted on NASDAQ OMX Stockholm, Sweden. The impairment explanations were analyzed according to a taxonomy of account types. The explanations were subjected to close reading to discern the potential rhetorical functions of the different accounts.
Findings
Seven account types are identified and discussed, namely, excuse, justification, refocusing, concession, mystification, silence and wordification.
Research limitations/implications
There is a need for further research that explores the process of authorship (i.e. writing, editing, negotiating and revising) through which the texts of financial communication are produced.
Practical implications
The findings have implications for the future formulations of standards regarding qualitative explanations in financial reporting in general and explanations of goodwill impairment in particular.
Originality/value
The paper contributes to the knowledge about the use of natural language and rhetoric in financial communication.
The aim of this paper is to study the rhetoric of goodwill impairment, more specifically rhetoric, as it is constructed in the form of accounts (i.e. statements that explain unanticipated or untoward behavior). The authors argue that goodwill impairment is not only a technical matter but also a rhetorical practice by means of which external scrutiny is responded to.
Design/methodology/approach
The data corpus consists of explanations provided by corporations regarding impairment of goodwill. Data were collected from annual reports from companies quoted on NASDAQ OMX Stockholm, Sweden. The impairment explanations were analyzed according to a taxonomy of account types. The explanations were subjected to close reading to discern the potential rhetorical functions of the different accounts.
Findings
Seven account types are identified and discussed, namely, excuse, justification, refocusing, concession, mystification, silence and wordification.
Research limitations/implications
There is a need for further research that explores the process of authorship (i.e. writing, editing, negotiating and revising) through which the texts of financial communication are produced.
Practical implications
The findings have implications for the future formulations of standards regarding qualitative explanations in financial reporting in general and explanations of goodwill impairment in particular.
Originality/value
The paper contributes to the knowledge about the use of natural language and rhetoric in financial communication.
Department/s
- Department of Business Administration
Publishing year
2017
Language
English
Pages
81-102
Publication/Series
Qualitative Research in Accounting and Management
Volume
14
Issue
1
Document type
Journal article
Publisher
Emerald Group Publishing Limited
Topic
- Business Administration
Keywords
- financial reporting
- rhetoric
- goodwill
- impairment
- accounts
- write-downs
Status
Published
ISBN/ISSN/Other
- ISSN: 1176-6093