Research On Information Disclosure Of Internally Generated Goodwill By Listed Companies

Along with the arrival of knowledge-based economy, the structure of resource in a corporation is changing greatly. The intangible resource is becoming more and more important in a corporation. As one kind of that, goodwill is playing a leading role in the corporation. Recently, mergers and acquisitions have been increasingly active. M&A lead to great combination goodwill. Just so in the last few years it has attracted more attention. However most of the discussion is focus on the bought out goodwill and many have arrived at agreements. The problem of information disclosure about the internally generated goodwill has not been solved faultlessly. Now the uniform method is bringing the bought out goodwill into accounting system only. Mainly because the internally generated goodwill cannot be valuated exactly, it has not been brought into the system as the bought out goodwill. At the traditional industrial economic ages, the specific weight that the internally generated goodwill has is very small, so the influence is very small if we do not disclose it. But in the recent years, because the information is increasingly related with the decision of information user, we should think about it from new. So in my opinion, study it is not only has important theories value, but also has special realistic meaning. In this thesis the author mainly makes use of accounting theory and combines the economics and the management knowledge to research the disclosure of the internally generated goodwill thoroughly. The thesis mainly makes researches on the internally generated goodwill. While carrying on the discuss, the author adopted the following many different research methods, such as the theories combines practicality, comparison research method, qualitative analysis method and quantitative analysis method etc. This thesis divides into five parts in all, which basic framework is as follows:Introduction. It concludes the significance of the chosen topic, research scope, research approach the logic structure of the thesis, the innovation and weak points of the thesis.Chapter one, the basic theories of the goodwill. This chapter starts to talk about from the history evolution of the connotation about goodwill. After induce the different connotations the author gives a comparatively rational one of it. Besides in this chapter the author explains the main contents and the sorts of the goodwill.Chapter two, the economical analysis of internally generated goodwill. This chapter contains two parts. Firstly discussed the economic characteristic of the goodwill in detail and analyzed how it helped corporation to realize more income further. Secondly it introduced the core competencies and analyzes the connection between the internally generated goodwill and the core competencies.Chapter three, the predicament and realistic choice of the listed companies′information disclosure for the internally generated goodwill. This chapter is the core part of this thesis. Firstly the author analyzed the need of information about the internally generated goodwill from benefits related such as investor, creditor and so on. At the same time, the need of financing and expanding from the listed companies themselves is also the reason for that. Secondly, the author discuss from accountancy's theories and the actual situation both side, and then come to a conclusion that the internally generated goodwill should not be recognized now. Thirdly, through analyzing the foundation of the off-statement disclosure, the author advanced a novel method to solve this problem.Chapter four, the strategy of the disclosure for internally generated goodwill and its evaluation. When disclosing financial information externally, listed companies are subject to both capital market and product market. Disclosing it externally will bring about both positive and negative effects at the same time. So a listed company has to trade off the positive and negative effects of disclosure on both capital market and product market and make a practical decision. Then this chapter also expatiates the two methods for evaluation.On the basis of the expansion and deepening of the previous research, the paper makes some innovation in the following aspects through deep research on the disclosure of the internally generated goodwill.1. After sum the different connotations, the author concludes a new one for it in the way of defining by the characteristic.2. Put together the internally generated goodwill and the core competencies knot and analyze the relationship between them. Point out that the relationship between them is the relation between contents and form. The former is a contents and the latter is a form.3. Putting forward the compromised method of the listed companies′information disclosure for the internally generated goodwill.Certainly, this problem is so complex and disputed that the thesis would have a great deal of defects. At the same time, because of the difficulty in collecting data, and the limitation of my knowledge, this thesis has not combined a realistic listed company case to explain the strategy of the internally generated goodwill disclosure and its evaluation.