Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors

Nuno Teixeira; Maria José Lopes; Teresa Godinho

doi:doi:10.11648/j.ijafrm.20190403.12

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Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors

Nuno Teixeira, Maria José Lopes, Teresa Godinho

Published in International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 3)

Received: 14 June 2019 Accepted: 16 July 2019 Published: 6 August 2019

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Abstract

This study aims to evaluate the material level of impairment losses registered by the Cape Verdean companies, as well as to analyze its fiscal impact. For this purpose, we ran the Cape Verdean’ accounting standards about this subject and studied the tax procedures on impairment registration in the country. In the empirical study, we performed an analysis of the annual report and accounts for 2012 and 2011 of fifty-seven large companies in Cape Verde. These were the benchmark years for establishing the country's major contributors and the normative framework on impairment’ application. Evidences showed that, in its vast majority, companies registered impairment losses, namely on customer debts and inventories. We also found that, empirically, impairment value was materially relevant and had impact on tax level, giving the meaningful association between payed taxes (negative association) and turnover (positive association), and registered impairment. In a future work, already in progress, we intended to verify the impairment registration’ during the period between 2013 and 2016. We will also try to understand if there is a greater social responsibility by Cape Verde’ major contributors.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 3)
DOI	10.11648/j.ijafrm.20190403.12
Page(s)	84-94
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Impairment, Tax Management, Accounting Standards

References

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APA Style

Nuno Teixeira, Maria José Lopes, Teresa Godinho. (2019). Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors. International Journal of Accounting, Finance and Risk Management, 4(3), 84-94. https://doi.org/10.11648/j.ijafrm.20190403.12

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ACS Style

Nuno Teixeira; Maria José Lopes; Teresa Godinho. Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors. Int. J. Account. Finance Risk Manag. 2019, 4(3), 84-94. doi: 10.11648/j.ijafrm.20190403.12

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AMA Style

Nuno Teixeira, Maria José Lopes, Teresa Godinho. Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors. Int J Account Finance Risk Manag. 2019;4(3):84-94. doi: 10.11648/j.ijafrm.20190403.12

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@article{10.11648/j.ijafrm.20190403.12,
  author = {Nuno Teixeira and Maria José Lopes and Teresa Godinho},
  title = {Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {3},
  pages = {84-94},
  doi = {10.11648/j.ijafrm.20190403.12},
  url = {https://doi.org/10.11648/j.ijafrm.20190403.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190403.12},
  abstract = {This study aims to evaluate the material level of impairment losses registered by the Cape Verdean companies, as well as to analyze its fiscal impact. For this purpose, we ran the Cape Verdean’ accounting standards about this subject and studied the tax procedures on impairment registration in the country. In the empirical study, we performed an analysis of the annual report and accounts for 2012 and 2011 of fifty-seven large companies in Cape Verde. These were the benchmark years for establishing the country's major contributors and the normative framework on impairment’ application. Evidences showed that, in its vast majority, companies registered impairment losses, namely on customer debts and inventories. We also found that, empirically, impairment value was materially relevant and had impact on tax level, giving the meaningful association between payed taxes (negative association) and turnover (positive association), and registered impairment. In a future work, already in progress, we intended to verify the impairment registration’ during the period between 2013 and 2016. We will also try to understand if there is a greater social responsibility by Cape Verde’ major contributors.},
 year = {2019}
}

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TY  - JOUR
T1  - Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors
AU  - Nuno Teixeira
AU  - Maria José Lopes
AU  - Teresa Godinho
Y1  - 2019/08/06
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190403.12
DO  - 10.11648/j.ijafrm.20190403.12
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 84
EP  - 94
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190403.12
AB  - This study aims to evaluate the material level of impairment losses registered by the Cape Verdean companies, as well as to analyze its fiscal impact. For this purpose, we ran the Cape Verdean’ accounting standards about this subject and studied the tax procedures on impairment registration in the country. In the empirical study, we performed an analysis of the annual report and accounts for 2012 and 2011 of fifty-seven large companies in Cape Verde. These were the benchmark years for establishing the country's major contributors and the normative framework on impairment’ application. Evidences showed that, in its vast majority, companies registered impairment losses, namely on customer debts and inventories. We also found that, empirically, impairment value was materially relevant and had impact on tax level, giving the meaningful association between payed taxes (negative association) and turnover (positive association), and registered impairment. In a future work, already in progress, we intended to verify the impairment registration’ during the period between 2013 and 2016. We will also try to understand if there is a greater social responsibility by Cape Verde’ major contributors.
VL  - 4
IS  - 3
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Author Information

Nuno Teixeira

Department of Accounting and Finance, Business School of Setúbal, Setúbal, Portugal
Maria José Lopes

Department of Accounting and Finance, Business School of Setúbal, Setúbal, Portugal
Teresa Godinho

Department of Accounting and Finance, Business School of Setúbal, Setúbal, Portugal

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Plain Text BibTeX RIS

APA Style

Nuno Teixeira, Maria José Lopes, Teresa Godinho. (2019). Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors. International Journal of Accounting, Finance and Risk Management, 4(3), 84-94. https://doi.org/10.11648/j.ijafrm.20190403.12

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ACS Style

Nuno Teixeira; Maria José Lopes; Teresa Godinho. Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors. Int. J. Account. Finance Risk Manag. 2019, 4(3), 84-94. doi: 10.11648/j.ijafrm.20190403.12

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AMA Style

Nuno Teixeira, Maria José Lopes, Teresa Godinho. Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors. Int J Account Finance Risk Manag. 2019;4(3):84-94. doi: 10.11648/j.ijafrm.20190403.12

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@article{10.11648/j.ijafrm.20190403.12,
  author = {Nuno Teixeira and Maria José Lopes and Teresa Godinho},
  title = {Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {3},
  pages = {84-94},
  doi = {10.11648/j.ijafrm.20190403.12},
  url = {https://doi.org/10.11648/j.ijafrm.20190403.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190403.12},
  abstract = {This study aims to evaluate the material level of impairment losses registered by the Cape Verdean companies, as well as to analyze its fiscal impact. For this purpose, we ran the Cape Verdean’ accounting standards about this subject and studied the tax procedures on impairment registration in the country. In the empirical study, we performed an analysis of the annual report and accounts for 2012 and 2011 of fifty-seven large companies in Cape Verde. These were the benchmark years for establishing the country's major contributors and the normative framework on impairment’ application. Evidences showed that, in its vast majority, companies registered impairment losses, namely on customer debts and inventories. We also found that, empirically, impairment value was materially relevant and had impact on tax level, giving the meaningful association between payed taxes (negative association) and turnover (positive association), and registered impairment. In a future work, already in progress, we intended to verify the impairment registration’ during the period between 2013 and 2016. We will also try to understand if there is a greater social responsibility by Cape Verde’ major contributors.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Impairments: Materiality and Fiscal Impact on Cape Verde’ Major Contributors
AU  - Nuno Teixeira
AU  - Maria José Lopes
AU  - Teresa Godinho
Y1  - 2019/08/06
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190403.12
DO  - 10.11648/j.ijafrm.20190403.12
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 84
EP  - 94
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190403.12
AB  - This study aims to evaluate the material level of impairment losses registered by the Cape Verdean companies, as well as to analyze its fiscal impact. For this purpose, we ran the Cape Verdean’ accounting standards about this subject and studied the tax procedures on impairment registration in the country. In the empirical study, we performed an analysis of the annual report and accounts for 2012 and 2011 of fifty-seven large companies in Cape Verde. These were the benchmark years for establishing the country's major contributors and the normative framework on impairment’ application. Evidences showed that, in its vast majority, companies registered impairment losses, namely on customer debts and inventories. We also found that, empirically, impairment value was materially relevant and had impact on tax level, giving the meaningful association between payed taxes (negative association) and turnover (positive association), and registered impairment. In a future work, already in progress, we intended to verify the impairment registration’ during the period between 2013 and 2016. We will also try to understand if there is a greater social responsibility by Cape Verde’ major contributors.
VL  - 4
IS  - 3
ER  -

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