Study On Goodwill Accounting

With the paces of the reform and opening-up quickening, the merger and acquisition become more and more important for reform of corporation. As an intangible assets, goodwill is one of the key factors we usually concern in the property right trading of corporation. We should enhance accounting of goodwill according to the principle of importance. But there still evokes much controversy about the goodwill accounting throughout both theoretical circle and practical circle. The thesis is focused on goodwill accounting for corporations.The structure of the study are as follows: part 1 introduces research background; part 2 gives an overview of theoretical basis of goodwill; part 3 as the key sector of the paper, analyzes the recognition and measurement of goodwill, discusses the re-recognition of goodwill, including amortization test and impairment test; final part explains the status quo of goodwill accounting in china and some suggestions are put forward too.The study shows the characteristics of goodwill are that: (l)it is the present value of extra-profit of corporation (2)it is an intangible assets (3)it is uncertain and risky (4)the usage is limit and the formation and variance of value is special compared to other assets.As to the recognition and measurement: (l)we should conceal combined variance item in combined statement when the goodwill is formed in the mode of controlling combination in order to conform to the international principle (2)the recognition of self-constructed goodwill is necessary (3)we should make impairment evaluation to revise amortization when we start to amortize after its first recognition (4)we attach more importance to un-direct measurement approach on present stage (5)direct measurement approach can be adopted to self-constructed goodwill, while for goodwill-purchased, it may be reference only, we should adopted un-direct approach to recognize (6)the accounting process of negative goodwill are that we should depreciate its fair value first, then amortize the residual parts in fixed time.In china, goodwill accounting faces many problems such as the choice of accounting policy, the influence on present theoretical structure, non-recognition of goodwill and diversity of accounting norm etc. some policy are necessary to overcomesuch problems:(1) Reconstruct theoretical framework of goodwill accounting basing on the capacity of extra-profit making of corporation(2)persist in the orientation of unifying and coordination(3)stipulate goodwill standards(4)perfect outer-conditions...