Document Type
Article
Abstract
Firms are becoming increasingly reliant on intangible assets to create value and differentiate themselves from their peers. Intangible assets are typically reported in the balance sheet using general categories such as “goodwill” or “other intangible assets.” Intangible assets are often unique in their attributes and productive lifespans, which makes them challenging to accurately and precisely record in accounting statements. While the assets themselves provide unique value creation opportunities, it is unclear whether specific intangible assets impact assessments of financial statement comparability. This study investigates whether the existence of various types of intangible assets leads to differences in financial statement comparability within a panel of hospitals. We find that hospitals reporting goodwill on their balance sheets have significantly different financial comparability compared to hospitals that do not report holding goodwill. Hospitals holding other types of intangible assets also exhibited significantly different financial comparability metrics from hospitals that did not report them.
Recommended Citation
Brajcich, A., D. Friesner, and M. McPherson. 2024. Do Intangible Assets Impact Financial Statement Comparability? A Case Study of Washington State Hospitals. The North American Accounting Studies 7 (1): 1-18.
Included in
Accounting Commons, Hospitality Administration and Management Commons, Nonprofit Administration and Management Commons