(DOC)-会计学外文文献及翻译----问责资产减值的决定-会计审计.docVIP

THE EFFECTS OF PRIOR INVOLVEMENT AND ACCOUNTABILITY ON ASSET IMPAIRMENT DECISIONS Randall W. Rentfro Nova Southeastern University rentfro@ ABSTRACT This study examines whether long-lived asset impairment decisions are biased when the decision maker was also involved in the original decision to invest in the asset. In addition, the study tests whether accountability for impairment decisions attenuates bias in the judgments made by individuals who were involved in the investment decision. The theoretical bases for the study’s research question and hypothesis come from the accountability and escalation of commitment literatures as well as a psychological theory previously untested in the accounting domain, the Catastrophe Theory of Attitudes (CTA). The study’s findings suggest that CTA may have potential to explain certain behaviors of accountants. Furthermore, accountability appears to mitigate bias stemming from prior involvement in the investment decision. INTRODUCTION This study examines (1) whether long-lived asset impairment decisions are affected by decision-maker’s involvement in the decision to invest in the asset and (2) whether accountability for the asset impairment decision mitigates biases in the decision-maker’s judgment resulting from that prior involvement. The motivation for the study stems from the decision-making process required by Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets(Financial Accounting Standards Board, 2001). The decision-making process begins with the accountant scanning the environment for indicators of asset impairments. If the accountant determines that an indicator is present, the accountant performs a recoverability test, which involves forecasting future net cash flows from the asset, to determine if the asset is impaired. If the test shows that the asset is impaired, the accountant writes down the asset to its fair value. Throughout this proce