%0 Journal Article
%T INTANGIBLE ASSETS IMPAIRMENT TEST ISSUES: THE CASE OF A BRAZILIAN TELECOMMUNICATIONS COMPANY
%A Paulo Roberto Barbosa Lustosa
%A Fernanda Fernandes Rodrigues
%A Rodrigo de Souza Gon£¿alves
%A Leonardo Vieira
%J Advances in Scientific and Applied Accounting
%D 2010
%I Associa??o Nacional de Programas de Pos-gradua??o em Ci¨ºncias Cont¨¢beis
%X National and international regulatory agencies by issuing new standards have tried to bring the accounting recorded values near to economic values. Nevertheless, it is understood that the latter carry a deeper level of subjectivity, on the grounds that completely new values will be obtained by the adoption of different conditions. This study aims to perform a comparative analysis between two company valuation methods: the Discounted Cash Flow and the Residual Income Valuation while performing the impairment test. The study case uses the database prepared by a telecommunications company to its subsidiary in the Internet sector for the purpose of the impairment test assessment. Some points have been identified as deserving special attention in a company¡¯s valuation assessment, namely the discount rate and the growth rate. The results show that: 1) a firm¡¯s economic value is sensitive to the use of a sole growth rate to calculate the perpetuity, considering that any changes in the rate will alter the decision based on the test; 2) the setup of a discount rate as a parameter in a firm¡¯s valuation assessment is a fundamental point for the write-off decision resulting from an impairment test.
%K Intangible assets
%K Impairment
%K Cash Flow
%K Residual Income
%U http://asaaccounting.info/asaa/article/view/15