(Impairment method was used to account goodwill, for this question what will be the impact to managers and investors if goodwill will be amortised with the default useful life of 10years)

Imagine that the International Accounting Standards Board (IASB) had recommended that companies amortise their goodwill over 10 years, starting in the 2023 financial year. Advise Cochlear Limited on the impact of such change in accounting policy. In your advice, include:

The impact of this change on Cochlear Limited's key stakeholders. Use the following research article to support your answer (as well as your own external research):

Clor-Proell, S.M., S. Garavaglia, L. Koonce and J.M. Thayer. 2023. The Power of the Default: Investors' Reactions to Default Amortization Periods and Deviations Therefrom. Working Paper. Available at SSRN: https://dx.doi.org/10.2139/ssrn.4175534

Don't worry so much about the methodology or statistical tests that were run The main parts to focus on are I. Introduction (pages 1- 5), II. History and literature review (pages 6-7) and V. Conclusion (page 25-28).

Tip: Think about whether the change in policy would have improved stakeholders' ability to make informed decisions about Cochlear Limited's goodwill and performance. In providing support for your opinion, make sure to refer to the research article as well as your own external research.