Research On Recognition And Measurement Of Internally Generated Goodwill

In the first decade of the 21st century, global business combination increased sharply. Integration and restructuring among enterprises becomes more and more common. A report named form Hua Qing Research Center says:between 2005 and 2009,there are 565 M&A events among public companies, which involves more than ten thousands billon yuan. Moreover, this number reaches a new high in 2009, five times more than the number in 2005. What's more, in 2008, the money involved records the peak, more than six thousands billon yuan. At the same time, M&A leads to huge combination goodwill. However, as says that Rome was not built in a day. this means that Internally Generated Goodwill is increasing sharply with the boom of economy, and this is extremely so in high-tech industries. Though there are relatively complete "accounting theory" in western countries, as to the issue of internally generated goodwill, they seem to avoided intentionally. When comes to our country, our accounting theory is still on the construction, and our Accounting Standard for Business Enterprises still on the stage of convergence with the International Accounting Standards, the research on Internally Generated Goodwill maybe just kick the tires. Facing reality bravely, that's why I choose "Research on Recognition and Measurement of Internally Generated Goodwill" as my research project.This paper consists of seven parts:in the first part, the background, incentives and methods of research are introduced. The second part is called Literature Review, in this part the author introduce the researches of accounting scholars on goodwill home and abroad and simply express the author's opinion. In the third part, the author introduce the basic concept, content and characteristics of goodwill to us. the fourth part to six part are core areas of this paper. In these three parts, the author illustrate the Recognition and Measurement of Internally Generated Goodwill, through the author's introduction, we can understand how this methods are used in the company. In the last part is about the prospect of research, and express his deep thinking through writing and whish himself could make great break on goodwill accounting.All in all, there are many theory and practice questions in the realm of Internally Generated Goodwill, and many topics worthy of our energy and patience. I hope Chinese accounting scholars can positively join in this great project, and put our achievements into accounting standards to guide the measurement of goodwill accounting, today and tomorrow.